Green Plains Announces Agreement to Sell Fleischmann’s Vinegar to Kerry Group
October 25 2018 - 3:00AM
Green Plains Inc. (NASDAQ:GPRE) announced today that it has entered
into a stock purchase agreement with Kerry Group to sell the
Fleischmann’s Vinegar Company, Inc. for $350 million in cash,
subject to certain post-closing working capital adjustments.
“The sale of Fleischmann’s Vinegar marks a major milestone of
our portfolio optimization plan which creates significant value for
our shareholders as we continue to prove value of our asset base
and position the company for the future,” said Todd Becker,
president and chief executive officer of Green Plains Inc. “Once
completed, this transaction, plus the proceeds from the sale of the
three ethanol facilities announced earlier this month, gives the
company the ability to completely pay off our term loan B, invest
in high-protein distillers grains process technology and repurchase
shares when our stock is undervalued.”
Fleischmann’s Vinegar Company, Inc is a USDA certified
all-natural producer of specialty ingredients that further support
Kerry’s taste and clean label strategies across a number of End Use
Markets. It is headquartered in California and has manufacturing
facilities in Washington, New York, Maryland, Illinois, Missouri,
Alabama and California.
The closing of the transaction, which is expected to occur
during the fourth quarter of 2018, is subject to customary closing
conditions and regulatory approvals. The purchase agreement
contains normal and customary representations and warranties, and
indemnification obligations.
XMS Capital Partners acted as the exclusive financial advisor
and Husch Blackwell LLP acted as legal advisor to Green Plains
Inc.
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 62.4% limited
partner interest and a 2.0% general partner interest in Green
Plains Partners. For more information about Green Plains, visit
www.gpreinc.com.
About Kerry GroupKerry is the world leader in
Taste and Nutrition, providing from food for food ingredients and
solutions to the global food and beverage industry, as well as
being a leading supplier of added value brands and customer branded
foods to the Irish, UK and selected international markets. The
company has offices in 30 countries, 135 manufacturing facilities
and employs 25,000 people worldwide, including over 900 food
scientists. With its strong food heritage, foundational
technologies, proprietary global insight tools, marketplace
knowledge, culinary and applications expertise, global footprint
and route to market, Kerry provides unique solutions that meet
consumers’ needs for more clean label and authentic products. For
more information, visit www.kerrygroup.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 successfully
complete the sale of Fleischmann’s Vinegar Company 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.
Kerry Group Contacts:Catherine Keogh | Vice
President Corporate Affairs and Communications | Tel: +353 66
7182304 | email: corpaffairs@kerry.ie William Lynch | Head of
Investor Relations | Tel: +353 66 7182292 | email:
investorrelations@kerry.ie
Green Plains Inc. Contact: Jim
Stark | Vice President Investor & Media Relations | Tel:
402.884.8700 | email: jim.stark@gpreinc.com
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