Green Plains Partners will sell its storage and transportation assets to Green Plains for $120.9 million.
The deal includes the transfer of railcar leases associated with the Lakota, Iowa, Bluffton, Ind and Riga, Mich ethanol facilities. These three plants account for 280 million gallons of nameplate capacity, which works out at 20% of Green Plains reported ethanol production capacity.
A total of 525 railcars managed by Green Plains Partners are anticipated to be conveyed to Green Plains. Additionally, Green Plains Partners has entered into an amendment with Green Plains Trade Group to extend the ethanol storage and throughput agreement for three years.
Todd Becker, president and CEO of Green Plains Partners, says: ‘The partnership is in a solid position to grow with availability under its credit facility and a renewed focus on expanding our footprint in the terminal business.’
The transaction is expected to close during the fourth quarter of 2018.