Pacific Ethanol sheds grain handling assets in Idaho for USD 10m
Ethanol production facility in the US. Featured Image: Jim Parkin/Shutterstock.com
US ethanol producer Pacific Ethanol Inc (NASDAQ:PEIX) has closed a USD-10-million (EUR 8.3m) all-cash deal to sell its grain handling assets in Idaho and used all net sale proceeds to pay down term debt.
Specifically, the company has sold 134 acres (54.2 ha) of land, rail loop and grain handling assets at its Pacific Ethanol Magic Valley plant in Burley to Liberty Basin LLC, while keeping the ethanol production facility and terminal on the remaining 25 acres.
The two parties have signed deals to coordinate operations and delivery of grain to the ethanol plant, the announcement says.
“The sale of real estate and grain handling assets at our Magic Valley facility marks further progress in our strategic realignment around higher, more stable margins in specialty alcohols and essential ingredients,” said Mike Kandris, Pacific Ethanol’s CEO. He added that the company intends to upgrade the product offerings before restarting production at the particular ethanol plant.