Ohio-based agribusiness firm The Andersons, Inc. has announced plans to purchase a majority of the grain and agronomy assets of Green Plains Grain Company, LLC, a subsidiary of Omaha-based Green Plains Renewable Energy.
The agreement involves the purchase of seven of Green Plains’ facilities in Iowa and five in Tennessee, with a combined grain storage capacity of about 32 million bushels.
The Andersons’ CEO Mike Anderson says it will be the largest acquisition in the company’s 65 year history, and will increase the storage capacity of its grain group by nearly 30 percent. Anderson says the transaction is expected to be finalized in the fourth quarter.
For Green Plains, the sale involves over 80 percent of its reported agribusiness grain storage capacity and all of its agronomy and retail petroleum operations. Green Plains’ president and CEO Todd Becker stressed that the company is not exiting U.S. agriculture. He says Green Plains will continue to participate with its remaining grain handling assets and through future grain storage expansions at or near its nine ethanol plants.
Green Plains is North America’s fourth largest ethanol producer.