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VeraSun nears one billion gallons of ethanol production with acquisition

Agriculture.com Staff 07/27/2007 @ 7:32am

VeraSun Energy Corporation this week announced plans to acquire three ethanol plants with a combined annual production capacity of 330 million gallons per yea from ASAlliances Biofuels, LLC, for $725 million.

The three facilities, each expected to operate at 110 million gallons per year, are located in Albion, Nebraska; Bloomingburg, Ohio; and Linden, Indiana. The acquisition should become final in 30 to 45 days and is subject to customary closing conditions.

The facilities will provide VeraSun with immediate production capacity and revenue. The Linden facility will begin startup operations this month, followed by Albion in the fourth quarter and Bloomingburg by the end of first quarter 2008. The acquisition will increase VeraSun’s production capacity to approximately one billion gallons by the end of 2008.

VeraSun currently has 340 million gallons per year of production capacity through its operating facilities in Aurora, South Dakota, and Fort Dodge and Charles City, Iowa. VeraSun has another 330 million gallons per year of production presently under construction and development in Hartley, Iowa; Welcome, Minnesota; and Reynolds, Indiana. The facilities being acquired are sister facilities to VeraSun's current fleet as they are all designed by ICM and built by Fagen, Inc.

The company is funding the acquisition through $200 million of equity, $250 million of cash and $275 million in project financing.

VeraSun Energy Corporation this week announced plans to acquire three ethanol plants with a combined annual production capacity of 330 million gallons per yea from ASAlliances Biofuels, LLC, for $725 million.

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