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By Colin Kellaher
Andersons Inc. (ANDE) and Marathon Petroleum Corp. (MPC) have combined their ethanol interests in a new entity aimed at extending and simplifying their long-standing partnership, Andersons said Wednesday.
Andersons, a Maumee, Ohio, diversified agricultural company, said it will own 50.1% of the new entity, Andersons Marathon Holdings LLC.
Andersons said the combination involves its wholly owned ethanol facility in Denison, Iowa, along with three plants that it jointly owned with Marathon, a Findlay, Ohio, downstream energy company that will own 49.9% of the new entity.
Andersons said it will consolidate the new entity's results in its financial statements.
The company said the move will result in a step-up in the book basis of the three jointly owned plants, along with a sizable noncash gain in the fourth quarter.
The asset step-up also will result in higher depreciation expense, Andersons said, noting that it is working to determine the amounts of the gain and the additional depreciation.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
October 02, 2019 09:30 ET (13:30 GMT)
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