REG to Buy Imperium Renewables
STREATOR, Ill. (DTN) -- Renewable Energy Group, Inc. and Imperium Renewables, Inc. said in a news release on Friday, July 31, that they signed an agreement where REG acquires the assets of Imperium, including a 100-million-gallon-per-year nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington. The biorefinery will be renamed REG Grays Harbor, LLC.
"Bringing the Imperium assets and their team into the REG network is a tremendous addition to our business," said Daniel J. Oh, REG president and CEO. "As we combine our companies, we will expand the reach of REG along the West Coast, including production and distribution."
The Grays Harbor facility includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water vessels as well as possessing significant rail and truck transport capability.
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Oh said the deal will enable REG "to be more efficient and timely in our delivery."
"REG's growth over the last eight years has made them an industry leader and our biodiesel facility in Hoquiam will greatly expand their domestic production footprint and continued success," said John Plaza, president and CEO of Imperium Renewables.
REG will pay $15 million in cash and issue 1.5 million shares of REG common stock in exchange for Imperium's assets. In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG. For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold. REG will also assume $5.2 million of Imperium's debt from Umpqua Bank.
Based in Ames, Iowa, REG is a North American producer and marketer of biomass-based diesel, with 10 active biorefineries across the United States and a nationwide distribution and logistics system.
Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004. The Grays Harbor refinery began operation in August 2007.
(BM/AG)
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