Biofuel Briefs

Pacific Ethanol Buys Final 4% Stake in Plants for $3.8M

STREATOR, Ill. (DTN) -- Pacific Ethanol, Inc., said in a news release on Thursday, June 18, it acquired the final 4% ownership interest in PE Op Co., the sole owner of the Pacific Ethanol plants, bringing the company's total ownership interest in PE Op Co. to 100%.

The purchase price of the final 4% ownership interest was $3.8 million in cash. On an aggregate basis, the company purchased its 100% ownership interest in PE Op Co. for $60.8 million, or $0.30 per gallon of capacity.

"We achieved our major milestone of regaining 100% ownership of the Pacific Ethanol plants, which has been an important initiative for the company since June of 2010," said Neil Koehler, president and CEO.

"Our 100% ownership position improves our potential to generate net income and reduces administrative costs. It is valuable to have completed this process before we close the Aventine merger scheduled for July 1."

Pacific Ethanol Inc. is a California-based producer and marketer of ethanol and co-products, including wet distillers grains. The company owns and operates four ethanol production facilities, with an annual total capacity of 200 million gallons.

(BM/AG)

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