Aug 21 2007
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, today announced that it closed on its acquisition with ASAlliances Biofuels, LLC for three ethanol plants with a combined annual production capacity of approximately 330 million gallons per year (MMGY). VeraSun announced the acquisition on July 23.
The three facilities are each expected to operate at 110MMGY and are located in Linden, Indiana, Albion, Nebraska and Bloomingburg, Ohio. The Linden facility began startup operations last month, while Albion will complete construction in the fourth quarter and Bloomingburg by the end of first quarter 2008.
The company funded the acquisition with $200 million of equity, $250 million of cash and $275 million in project financing. The equity consisted of 13,801,384 shares of VeraSun stock valued at $14.49.
VeraSun now has 450MMGY of production capacity with four facilities in operation and another 550MMGY of capacity under construction at five different sites. In addition to the Linden facility, VeraSun has operating plants in Aurora, South Dakota and Fort Dodge and Charles City, Iowa. Construction is underway at Hartley, Iowa, Welcome, Minnesota, and Reynolds, Indiana, in addition to the Albion and Bloomingburg facilities. Each of VeraSun’s nine facilities is expected to operate at 110MMGY, with the exception of VeraSun Aurora, which is a 120MMGY facility.