Alto Ingredients, Inc. has signed a definitive agreement with Seaboard Energy California, LLC to sell its fuel ethanol production facility in Madera, CA for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities.
The sale of the 40-million gallon/year facility is expected to close in the second quarter of 2021, subject to customary closing conditions. The majority of the cash proceeds will be used to retire company debt.
“We further optimized our production footprint with the sale of our Madera facility, which will reduce the carrying cost associated with our idled plants," says Michael Kandris, Alto Ingredients, Inc.’s president and CEO. "We are in discussions to sell our other idled California facility in Stockton and will announce those terms once an agreement has been reached.”
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO), formerly known as Pacific Ethanol, Inc., is a leading producer of specialty alcohols and essential ingredients.