Green Plains Completes Cargill Feed Yard Acquisition
May 16 2017 - 4:33PM
Green Plains Inc. (NASDAQ:GPRE) today announced that its
subsidiary, Green Plains Cattle Company, completed the previously
announced acquisition of two cattle feed yards from Cargill for
approximately $36.7 million, excluding working capital. The
transaction includes feed yards located in Leoti, Kan. and Yuma,
Colo., adding capacity of 155,000 head to the company’s operations,
and positions Green Plains Cattle Company as the fourth largest
cattle feeder in the United States with total capacity of more than
255,000 head.
“This acquisition achieves scale in our cattle feeding
operations and creates significant internal demand for our ethanol
co-products,” said Todd Becker, president and chief executive
officer of Green Plains. “We will use our risk management expertise
to optimize this acquisition’s contributions and further diversify
our earnings stream.”
The company also entered into a long-term supply agreement with
Cargill Meat Solutions to provide a reliable supply of cattle from
the Leoti and Yuma locations, as well as Green Plains’ existing
feedlot in Kismet, Kan. The transaction was financed using cash on
hand.
About Green Plains Inc.Green Plains Inc.
(NASDAQ:GPRE) is a diversified commodity-processing business with
operations related to ethanol production, grain handling and
storage, cattle feedlots, food ingredients, and commodity marketing
and logistics services. The company is the second largest
consolidated owner of ethanol production facilities in the world
with 17 dry mill plants, producing nearly 1.5 billion gallons of
ethanol at full capacity. Green Plains owns a 62.5% limited partner
interest and a 2.0% general partner interest in Green Plains
Partners. For more information about Green Plains, visit
www.gpreinc.com.
Contact: Jim Stark, Vice President - Investor and Media Relations, Green Plains Inc. (402) 884-8700
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