Andersons buys 12 grain elevators in Iowa, Tenn.

10/30/2012

The Andersons Inc. 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,” Mike Anderson, chief executive officer of the Maumee-based agribusiness, said in a statement.

The agreement, which is expected to close before the end of the year, involves the purchase of seven facilities in northwestern Iowa and five in western Tennessee, with a combined grain storage capacity of about 32 million bushels, 12,000 tons of nutrient storage, and more than 130 employees.

Green Plains said the estimated price is $133.1 million, including the assumption of about $28.3 million in debt.

“This acquisition is consistent with our strategy of expanding our footprint into high-grain-production geographies where we can leverage our core capabilities to serve more customers in diverse trade areas. It enables us to push further to the west and south, increasing our presence in Iowa and entering Tennessee,” Denny Addis, president of the Andersons’ grain group, said. “An additional benefit is our ability to now offer agronomy services in a combined manner with our grain business.”

Green Plains Grain Co. is a subsidiary of Omaha-based Green Plains Renewable Energy Inc., the fourth-largest ethanol producer in North America. Green Plains CEO Todd Becker said the company will keep its grain-handling assets and anticipates storage expansions at or near its Nebraska ethanol plants in Central City and Ord.