Green Plains Inc. announces its subsidiary, Green Plains Hereford LLC, has completed the previously announced sale of its ethanol plant located in Hereford, TX, to Hereford Ethanol Partners, L.P. for $39 million, plus working capital.
Additionally, an earnout provision of up to $75 million related to certain value enhancement opportunities, including future earnings from Low Carbon Fuel Standard credits was included as part of the transaction.
In conjunction with this transaction, Green Plains Partners LP also announces it has completed the sale of the storage assets and the assignment of certain rail transportation assets associated with Green Plains Hereford LLC for $10 million. The proceeds from the transaction were used to repay debt.
About Hereford Ethanol Partners, L.P.
Hereford Ethanol Partners, L.P. is a newly formed, wholly owned subsidiary of a privately-held Texas investment group that has maintained strategic investments in agriculture and energy infrastructure and operations for over 50 years. It is expected that the facility will resume production in Q2 2021.
