Pacific Ethanol, Inc. has entered into an agreement with Liberty Basin, LLC to sell 134 acres, rail loop and grain handling assets at its Pacific Ethanol Magic Valley plant in Burley, Id for $10 million in cash.
Pacific Ethanol will retain the ethanol production facility and terminal on the remaining 25 acres and will enter into certain agreements with Liberty Basin, LLC for delivery of grain to the plant.
The sale is expected to close on or before November 30, 2020, subject to customary closing conditions.
“The sale of real estate and grain handling assets at our Magic Valley facility to Liberty Basin, LLC further demonstrates our commitment to strengthening our balance sheet through monetizing idled assets at a value accretive to shareholders and repurposing the production assets,” says Mike Kandris, Pacific Ethanol’s CEO. “Liberty Basin provides a great strategic alliance for managing grain delivery to the renewable fuel plant and to meet animal feed demand in the Idaho markets. Pacific Ethanol will continue to own the ethanol plant with the intent to upgrade product value prior to restarting production.
“As we have said in our recently announced strategic realignment toward a business focus in specialty alcohols and essential ingredients, Pacific Ethanol will repurpose or sell its idled plants. This sale is a first step toward the objective to add value to our Magic Valley plant. We will continue with our strategic realignment plan and anticipate communicating additional transactions in the future.”
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX) is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty, Food & Beverage, Essential Ingredients and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. Pacific Ethanol’s subsidiary, Kinergy Marketing LLC, markets all specialty alcohol products for Pacific Ethanol’s distilleries as well as fuel grade ethanol for third parties. Pacific Ethanol’s subsidiary, Pacific Ag. Products LLC, markets wet and dry distillers grains.