Green Plains Renewable Energy (GPRE ) Will Buy Two Nebraskan Ethanol Plants

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08:27:11 am on May 22, 2009

Green Plains Renewable Energy just announced that it has signed agreements to buy 2 Nebraskan ethanol plants. By purchasing these plants, Green Plains Renewable Energy will be able to produce 480 million gallons of ethanol each year, 45% more than it currently produces. It will also become the 4th largest US ethanol producer. The company will pay $123.5 million for the plants. The deal is being financed by AgStar Financial Services, and Green Plains Renewable Energy will pay $10 million at closing. AgStar will also provide a seasonal revolving loan that will pay for working capital at the plants.

In a press release, Green Plain’s President/CEO Todd Becker commented on the deal:

"The acquisition of the plants in Central City and Ord lowers our cost of production and improves our ability to compete in the industry," said Todd Becker, Green Plains’ President and Chief Executive Officer. "This purchase is consistent with our strategy to selectively acquire assets at reasonable valuations that provide long-term benefits to our shareholders."

"These plants are in excellent locations. Within the 14 contiguous counties surrounding Ord and Central City, there are over 300,000 cattle on feed and approximately 300 million bushels of corn grown annually. This close proximity to large feedlot operations and vast corn supplies will reduce our energy and feedstock costs at these facilities. The Central City and Ord plants share the same process technology deployed at the majority of our plants, which should allow us to integrate them into our business with little disruption," added Becker.

"Much of the success of these plants is dependent on building solid relationships in Central City, Ord and the surrounding areas. We look forward to working with leaders in each community and the employees at these facilities," stated Becker.

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