Andersons to buy 12 grain elevators
10/29/2012The Andersons Inc. announced today that it plans to buy 12 grain elevators from Green Plains Grain Co. LLC.
"This will be the largest acquisition in our company's 65-year history, and will increase the storage capacity of our Grain Group by nearly 30 percent," CEO Mike Anderson said in a statement.
The agreement, which is expected to close before the end of the year, involves the purchase of seven facilities in Iowa and five in Tennessee, with a combined grain storage capacity of about 32 million bushels.
The Andersons, based in Maumee, does business in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.
Green Plains Grain Co. is a subsidiary of Green Plains Renewable Energy, Inc., which is the fourth-largest ethanol producer in North America.
A release from Green Plains said the estimated sales price for the facilities and certain related working capital is $133.1 million, including the assumption, at closing, of term debt of approximately $28.3 million.