Jun 9, 2014 - US-based Renewable Energy Group Inc (NASDAQ:REGI), or REG, said today it had closed the purchase of the 50% stake it did not already own in the Geismar renewable diesel biorefinery in the state of Louisiana.
REG bought the stake through the acquisition of 50% in Geismar's holding company, Dynamic Fuels, from meat processor Tyson Foods Inc (NYSE:TSN) for about USD 16.5 million (EUR 12m) plus up to USD 35 million in future milestone payments. In addition, the buyer has retired some USD 13.5 million of debt at closing.
The other half in Dynamic Fuels was purchased last week through the acquisition of its other 50% owner, Oklahoma-based renewable diesel fuel technologies firm, Syntroleum Corp (NASDAQ:SYNM).
The plant has an annual nameplate capacity of 75 million gallons (283.9 million litres) of biodiesel. It will now operate as REG Geismar LLC.