Pacific Ethanol acquire Aventine Renewable

Pacific Ethanol to acquire Aventine Renewable

11:32 AM, 2nd January 2015
Pacific Ethanol to acquire Aventine Renewable

SACRAMENTO, US: Pacific Ethanol Inc, the leading producer and marketer of low-carbon renewable fuels in the Western United States, and Aventine Renewable Energy Holdings Inc, a Midwest-based producer of ethanol and related co-products, have entered into a definitive merger agreement under which Pacific Ethanol will acquire all of Aventine’s outstanding shares in a stock-for-stock merger transaction.

Under the terms of the merger agreement, Pacific Ethanol expects to issue approximately 17.75 million shares of its common stock upon closing in exchange for all of the issued and outstanding shares of Aventine’s common stock. Upon completion, existing Pacific Ethanol shareholders will own approximately 58 per cent of the issued and outstanding shares of common stock of the combined entity. Aventine will be operated as Pacific Ethanol’s wholly-owned subsidiary. The closing of the transaction, which is expected to occur during the second quarter of 2015, is subject to customary and other closing conditions and regulatory approvals, as well as the approval of Pacific Ethanol’s and Aventine’s shareholders.

“With this transaction, Pacific Ethanol strengthens its unique production and marketing advantages by diversifying into two additional discrete markets and connecting its Western markets with Aventine’s Midwest and Eastern markets for low-carbon renewable fuels. The merger offers a rare opportunity to combine the experience, market presence and diversification that Aventine brings with our industry leadership in Western US markets. It will complement our existing business as we balance assets across new regional markets, expand our footprint for the production and marketing of low-carbon renewable fuels, diversify our technology and increase our mix of co-products,” said Neil Koehler, CEO, Pacific Ethanol.

“This transaction will more than double our annual ethanol production capacity, and it will establish Pacific Ethanol as the fifth largest producer and marketer of ethanol in the United States. Once closed, we expect the transaction to be immediately accretive to earnings with expected operational synergies and the expansion of our ethanol and co-product marketing business. We are impressed with the both the quality of Aventine’s assets and the seasoned employees operating the business, and we look forward to integrating our teams,” concluded Koehler.

 

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