Green Plains Partners LP announced it has reached an agreement to sell its storage and transportation assets and transfer railcar leases associated with the Lakota, IA, Bluffton, IN, and Riga, MI, ethanol facilities to Green Plains Inc. for $120.9 million.
These three plants account for 280 million gallons of nameplate capacity, or approximately 20% of Green Plains Inc.’s reported ethanol production capacity.
In addition, approximately 525 of the 3,500 railcars managed by Green Plains Partners are anticipated to be conveyed to Green Plains Inc.
Green Plains Partners will receive 8.9 million units owned by Green Plains Inc. as payment for the transaction and has also entered into an amendment with Green Plains Trade Group LLC to extend the Ethanol Storage and Throughput Agreement for three years.
The transaction is anticipated to close during the fourth quarter of 2018 in conjunction with the completion of the Green Plains Inc. ethanol asset sale. The purchase agreement is subject to customary closing conditions and regulatory approvals.