AMES, Iowa--(BUSINESS WIRE)--Renewable Energy Group® (NASDAQ:REGI) Tuesday completed the purchase of a 30-million gallon per year capacity biodiesel plant in Mason City, Iowa, formerly owned by Soy Energy, LLC.
Former Soy Energy, LLC unit holders approved the sale in a vote Monday, July 29. Pursuant to the purchase agreement, REG acquired the biorefinery for $11 million in cash and the issuance of a $5.6 million promissory note. Due to a post-closing adjustment, the note was reduced to $5.1 million.
“We are very pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy,” said Daniel Oh, REG President and CEO. “We are happy to be restoring jobs to the community and look forward to working with local businesses as we work to re-open the plant.”
REG plans to repair and re-start the facility using soybean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company’s total annual production capacity to 257 million gallons. REG now owns and operates eight active biorefineries. REG Mason City, LLC joins the company’s nearby plants in Newton and Ralston, Iowa and Albert Lea, Minnesota. REG also owns active plants in Illinois and Texas.
REG has begun the hiring process and expects to employ 15 to 25 full-time employees in family wage jobs when the plant is re-started.
Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 255 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.
For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000® branded biodiesel is distributed in nearly every state in the U.S.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to REG’s plans to repair and re-start the Mason City facility and the expected benefits of the acquisition. Actual results may vary materially due to a number of factors including, but not limited to, the risk that the Mason City facility will not be able to be re-started, the risk of management distraction associated with bringing the Mason City facility back online, as well as other risks that are detailed from time to time in REG’s SEC reports. REG is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Information contained in our website is not incorporated by reference in, or made part of this press release.