Pacific Ethanol, Inc. completes sale of its stake
SACRAMENTO, Calif., April 16, 2020 (GLOBE NEWSWIRE) – Pacific Ethanol, Inc. (NASDAQ: PEIX), a leading producer and distributor of low-carbon renewable fuels and high-quality alcohols in the United States, today announced that it has completed its agreement to sell its 74% stake in Pacific Aurora, LLC to Aurora Cooperative Elevator Company (Aurora Cooperative) for a total valuation of $ 52.8 million. After working capital adjustments and the settlement of certain debts between the parties, the Company received at closing $ 20.2 million in cash, before fees, and $ 16.5 million in promissory notes. About $ 14.5 million of the cash proceeds will be used to pay off the principal to its lender, CoBank.
Neil Koehler, President and CEO of Pacific Ethanol, said, “We are delighted to have completed our sale to Aurora Cooperative and its farmer owners, which represents an important milestone in delivering on our strategic initiatives to reduce debt and continue to focus our resources on delivering higher value alcohol and feed to the markets we serve.
Chris Vincent, President and CEO of Aurora Cooperative, said, “Aurora Cooperative is pleased to protect these local destinations and the rail markets for our farmer owners by acquiring full ownership of these ethanol plants, these silos. and these railway assets. With this acquisition, Aurora Cooperative will protect our markets and be “stronger together” for our owners, employees and the communities we serve.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX) is a leading producer and distributor of low carbon renewable fuels and high quality alcohol products in the United States. Pacific Ethanol owns and operates nine production facilities, four in the western states of California, Oregon and Idaho, and five in the midwestern states of Illinois and Nebraska. The factories have a combined production capacity of 605 million gallons per year, produce over one million tonnes per year of ethanol co-products – on a dry matter basis – such as wet and dry distillers grains , wet and dry corn gluten, soluble condensed stills, corn gluten meal, corn germ, corn oil, distillers’ yeast and CO2. Pacific Ethanol markets and distributes fuel grade ethanol, high quality alcoholic products and co-products nationally and internationally. Pacific Ethanol’s subsidiary, Kinergy Marketing LLC, markets all ethanol and alcohol products for Pacific Ethanol plants as well as third parties, approaching one billion gallons of ethanol marketed annually based on historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag. Products LLC, markets wet and dry distillery grains. For more information, please visit www.pacificethanol.com.
About the Aurora cooperative
Aurora Cooperative is one of the largest agricultural retailers in the country, ranking 28th nationally among all agricultural cooperatives. Aurora Cooperative has been a partner in farming success for over 112 years, providing competitive, high quality products and services that growers rely on every day. Based in Aurora, Nebraska, Aurora Cooperative has more than 700 employees at 82 sites in seven states, where they provide services and expertise in the areas of grains, agronomy, animal nutrition and energy. In 2019, Aurora Cooperative had total sales of over $ 1 billion, served over 4 million acres, marketed over 120 million bushels of grain, and had over 34,000 equity members. The Aurora Cooperative is a well-established, competitive and innovative cooperative that aims to provide our owners with cost-effective solutions that meet their specific needs. We do this by proactively putting our owners’ equity to work, every day, for their farm, their co-op and for their future. For more information on the Aurora Cooperative, please visit www.auroracoop.com.
Safe Harbor Declaration under the Private Titles Litigation Reform Act 1995 The statements and information contained in this communication that refer to or include the estimated or anticipated future results of Pacific Ethanol or other expressions of non-historical facts are forward-looking statements that reflect Pacific Ethanol’s current outlook on existing trends and information at the date of the communication. . Forward-looking statements will generally be accompanied by words such as “anticipate”, “believe”, “plan”, “could”, “should”, “estimate”, “expect”, “expect”, “prospect”, “” intend to “,” may “,” could “,” will “,” possible “,” potential “,” predict “,” project “or other similar words, phrases or expressions. These forward-looking statements include, without limitation, statements about the benefits of the sale of Pacific Ethanol’s interest in Pacific Aurora, LLC; the expected outcome of Pacific Ethanol’s strategic initiatives; and Pacific Ethanol’s plans, objectives, expectations and intentions. It is important to note that Pacific Ethanol’s plans, goals, expectations and intentions are not actual performance predictions. Actual results may differ materially from Pacific Ethanol’s current expectations depending on a number of factors affecting Pacific Ethanol’s business. These factors include, inter alia, adverse economic and market conditions, particularly for ethanol and its co-products and high quality alcohols; export conditions and international demand for ethanol and co-products, including the failure to resolve trade disputes between the United States and China; fluctuations in the price and demand of oil and gasoline; raw material costs, including the costs of ethanol production inputs, such as corn and natural gas; and Pacific Ethanol’s ability to execute its strategic initiatives on a timely and successful basis. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the expected size of markets and continued demand for Pacific Ethanol products; the impact of competitive products and prices; the risks and uncertainties inherent in the ethanol production and marketing industries; changes in generally accepted accounting principles; compliance with government regulations applicable to Pacific Ethanol facilities, products and / or businesses; changes in laws, regulations and government policies; loss of senior management or key employees; and other events, factors and risks previously and from time to time disclosed in documents filed by Pacific Ethanol with the Securities and Exchange Commission, including, in particular, the factors set out in the “Risk Factors” section contained in Pacific Ethanol Form 10-K filed with the Securities and Exchange Commission on March 30, 2020.
|Company IR contact:||Contact of the RI agency:||Media contact:|
|Ethanol Pacific, Inc.||Moriah Shilton||Paul koehler|
|916-403-2755||LHA||Ethanol Pacific, Inc.|