IRISH renewable energy group NTR will see its stake in US company Green Plains Renewable Energy, fall by 4% as a result of the latter carrying out a major acquisition.
NTR remains the majority shareholder.
Green Plains yesterday announced that it has agreed to buy Minneapolis-based company, Global Ethanol for €124.4 million. NTR currently owns a 35.42% stake in Green Plains.
Once the transaction is completed, the Dublin-headquartered group will control 31.4%, but will still be ranked as the company’s majority shareholder.
Green Plains has, however, stated that it will continue to look at further acquisition opportunities.
The Global deal gives Green Plains two additional operating ethanol plants – in Iowa and Michigan – and should increase its overall capacity by 31%.
Once the transaction is closed, Green Plains will market and distribute more than one billion gallons of ethanol production on an annual basis.
Commenting on the deal, Green Plains chief executive Todd Becker said: “This transaction demonstrates our ability to make acquisitions at attractive valuations utilising a combination of our strong balance sheet and our stock, allowing us to meet the differing objectives of ethanol plant owners.”
“The addition of the global plants enables us to lower our average cost of ethanol production assets and to achieve greater economies of scale in our marketing, risk management and back office operations.
“We believe that this acquisition will be accretive to 2011 earnings.
“Consistent with our strategy to expand our operations throughout the ethanol value chain, we continue to seek out consolidation opportunities within each of our business segments,” Mr Becker added.
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