REG to Acquire WI Biorefinery
OAKHURST, N.J. (DTN) -- Renewable Energy Group, Inc. on Wednesday, Feb. 3, announced that it has signed an asset purchase agreement with Sanimax Energy, LLC to acquire Sanimax's 20 million gallon nameplate capacity biodiesel refinery in DeForest, Wisconsin, which has both truck and rail capabilities.
Under the asset purchase agreement, REG will pay Sanimax approximately $11 million in cash and will issue 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG will also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant, which will be renamed REG Madison, LLC.
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Sanimax operates a grease processing facility at the same location, although that facility is not part of the acquisition.
"With growing biomass-based diesel volumes in the U.S., REG is continuing its growth as well," said Daniel J. Oh, REG president and CEO. "This plant will add to our network of lower-cost, lower-carbon intensity, multi-feedstock biorefineries."
Closing the transaction is subject to customary conditions.
Upon closing, REG will have 11 active North American biomass-based diesel refineries in seven states with a combined nameplate production capacity of 452 million gallons: Iowa, three; Texas, two; Louisiana, Minnesota, Washington, and Wisconsin, one each.
(BM/AG)
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