January 3 (Renewables Now) - Southwest Iowa Renewable Energy LLC (SIRE), the operator of an ethanol plant in Council Bluffs, has bought back the Series B membership units held by Bunge North America LLC, part of food group Bunge Ltd (NYSE:BG), the company announced on Thursday.
The deal, effective as of December 31, comes 13 years after Bunge first acquired its stake in SIRE. The company used its existing credit facility to fund the transaction.
The commercial agreements between the two companies have also been revised. As a result, SIRE will be responsible for originating corn and marketing dried distillers grains produced by its ethanol plant in Iowa. Bunge will still buy all of the ethanol produced by the facility, which has a capacity of 140 million gallons (530 million litres) a year. The existing agreements for rail car lease between the two companies will also remain in place.
"As Bunge focuses our resources on our core businesses, selling our shares in SIRE, while maintaining a relationship, is an attractive opportunity," Bunge's North America country manager Andres Martín stated.