IA: The Andersons Enters into Purchase Agreement for Iowa Ethanol Plant
1 Mar, 2012
The Andersons, Inc. (Nasdaq: ANDE) announced today the signing of an agreement to acquire an ethanol production facility in Denison, Iowa from its owners, the Amaizing Energy Denison LLC and Amaizing Energy Holding Company, LLC. The transaction, which remains subject to several contingencies, is anticipated to close in the second quarter.
If acquired, the plant would be owned by The Andersons Denison Ethanol LLC, a wholly-owned subsidiary of The Andersons, Inc.
"As our first ethanol plant west of the Mississippi, this facility provides us with geographic diversity into some of the best corn ground in the country," says Neill McKinstray, President, Ethanol Group. "This purchase enables us to expand our ethanol production, marketing and services into a new region providing arbitrage and risk management opportunities with the three existing plants we manage while leveraging existing administrative staff to a fourth plant. With much of the same technology in all four plants, we expect to bring additional efficiencies to drive down our cost per gallon, and maximize returns to shareholders as we have successfully demonstrated during the past five years."
CEO Mike Anderson, adds, "This is a well-respected, well-run organization that brings with it a solid customer base in a geographic area that we are looking forward to serving. This ethanol facility enables us to offer our grain marketing expertise and the associated services to grain producers in Iowa and fits well with our existing presence as an investor in the Iowa Northern Railway Company and our merchandising relationship with Lansing Trade Group."
The operations consist of an ethanol facility with an adjacent 2.7 million bushel grain terminal, both with direct access to two Class 1 railroads in Iowa.
Sam Cogdill, Chairman and CEO of Amaizing Energy, stated that the proposed sale will address the liquidity concerns of Amaizing Energy's membership, while retaining the economic benefits the Denison facility has in the local area.
"Our investors committed to Amaizing Energy to earn a good return on their investment and to further local economic development and we feel great about having met both of those goals," said Cogdill. "Placing Amaizing Energy on the market while it was a profitable operation has allowed it to reach a fair deal with a great company who we know will operate our plant properly."
About The Andersons, Inc.
The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations across the United States, in Puerto Rico, and has rail equipment leasing interests in Canada and Mexico. For more information, visit The Andersons online at www.andersonsinc.com
About Amaizing Energy
Amaizing Energy Denison, LLC is a wholly owned subsidiary of Amaizing Energy Holding Company, LLC. Amaizing Energy owns and operates a dry-mill ethanol plant in Denison, Iowa. The western Iowa facility was designed and constructed by Fagen, Inc. and commenced operations in September 2005. Amaizing Energy currently has 42 full time employees responsible for operating its facility and prides itself on providing quality jobs, quality products and consistent returns to its owners. For more information please visit our website at www.amzenergy.com