UPDATE - REG closes acquisition of Imperium Renewables
US biofuels producer Renewable Energy Group Inc (NASDAQ:REGI), or REG, has wrapped up its takeover of biodiesel company Imperium Renewables Inc, the two parties announced on Wednesday.
Through this transaction, REG has acquired the Imperium Grays Harbor biodiesel facility in Washington state, which has the annual capacity to produce up to 100 million gallons (378.5m litre) of biomass-based diesel. The site has 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake.
Under the terms of the deal, announced in early August, REG has paid USD 15 million (EUR 13.5m) in cash and issued 1.675 million own common shares, while also assuming USD 5.2 million of Imperium's debt from Umpqua Bank. Imperium may receive a payment of up to USD 0.05 per gallon of biodiesel produced and sold for two years after completion.
REG noted that most of Imperium’s employees have agreed to stay on with the new owner.