Green Plains Acquires Bartlett Cattle Company
July 31 2018 - 11:32AM
Green Plains Inc. (NASDAQ:GPRE) today announced that its
subsidiary, Green Plains Cattle Company, has signed a definitive
agreement to acquire two cattle-feeding operations from Bartlett
Cattle Company LC for approximately $16 million, plus working
capital. The transaction includes two feed yard operations located
in Sublette, Kansas and Tulia, Texas with combined capacity of
approximately 97,000 head, increasing Green Plains Cattle’s feeding
operations to 355,000 head of capacity.
“Our success in cattle feeding over the last four years gives us
confidence to continue growing in this area and adding the Bartlett
cattle-feeding operations fits seamlessly into our protein growth
strategy,” commented Todd Becker, president and chief executive
officer of Green Plains. “Expanding our feeding operations by 38%
strengthens our ability to further supply our internal demand for
the distillers grains and corn oil we produce. This acquisition
will be immediately accretive to our earnings in the third quarter
and enhances our ability to deliver more stable and consistent
earnings to our shareholders.”
The acquisition includes the purchase of working capital,
comprised of cattle, grain and other inventories totaling
approximately $109 million. The two feedlots consist of
approximately 2,100 acres of land, grain storage and excellent
water sources.
In conjunction with the close of the transaction, the company
will be amending the Green Plains Cattle senior secured revolving
credit facility, increasing the maximum commitment from $425
million to $500 million to fund the additional working capital
requirements related to the Bartlett acquisition. The amended
credit facility includes an accordion feature that enables the
credit facility to be increased by up to $100 million with agent
approval.
The transaction is expected to close Aug. 1, 2018.
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 feeding, food ingredients, and commodity marketing
and logistics services. The company is one of the leading producers
of ethanol in the world and, through its adjacent businesses, is
focused on the production of high-protein feed ingredients and
export growth opportunities. 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.
Forward-Looking StatementsThis news release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements reflect management’s current views,
which are subject to risks and uncertainties including, but not
limited to, anticipated financial and operating results, plans and
objectives that are not historical in nature. These statements may
be identified by words such as “believe,” “expect,” “may,”
“should,” “will” and similar expressions. Factors that could cause
actual results to differ materially from those expressed or implied
include risks related to Green Plains’ ability to realize the
anticipated benefits of the feedlot acquisition and other risks
discussed in Green Plains’ reports filed with the Securities and
Exchange Commission. Investors are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date of this news release. Green Plains assumes no obligation to
update any such forward-looking statements, except as required by
law.
Contact: Jim Stark, Vice President - Investor
and Media Relations, Green Plains Inc. (402) 884-8700
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