AMES, Iowa--(BUSINESS WIRE)--Renewable Energy Group, Inc. (NASDAQ:REGI) completed its acquisition Tuesday of Sanimax Energy’s 20 million gallon nameplate capacity biodiesel refinery located in DeForest, Wisconsin, the Company announced today.
REG paid Sanimax $11 million in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant, which is now called REG Madison, LLC.
“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG Vice President, Manufacturing. “We welcome the newest members of our team at REG Madison and are proud to be a part of the DeForest community.”
Most of the biodiesel employees have agreed to stay on with REG. The biorefinery is located just north of Madison, Wisconsin and began production in 2007. Using the same REG patented and proven high free fatty acid processing technology as the Company’s Seneca, Illinois plant, REG Madison produces biodiesel from lower cost, lower carbon intensity feedstocks including yellow grease, rendered animal fats, and inedible corn oil in addition to refined vegetable oils. The facility has both truck and rail capabilities.
This is the first Wisconsin plant for REG, which now owns and operates 11 active biomass-based diesel refineries in seven states with a combined nameplate production capacity of 452 million gallons annually. A formal grand opening will be announced at a later date.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 12 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.