Pacific Ethanol finalizes US merger with Aventine Renewable Energy

Pacific Ethanol, the leading producer and marketer of low-carbon renewable fuels in the Western US, has now completed its merger with Aventine Renewable Energy, officials announced on Wednesday.

"We are pleased to complete this transformative acquisition, establishing Pacific Ethanol as the sixth-largest producer of ethanol in the United States," said CEO Neil Koehler. 

"In addition to more than doubling our ethanol production capacity, this synergistic transaction expands our geographic footprint, leverages our existing infrastructure to reach new markets and customers and enhances our overall scale and co-product diversification," he added.

Per the terms of the merger agreement, Aventine stockholders received 1.25 shares of Pacific Ethanol common stock for each share of Aventine common stock owned at closing. As a result, Pacific Ethanol issued approximately 17.76 million shares in the merger, resulting in 42.5 million total shares outstanding as of July 1. 

Aventine had term debt of approximately $145 million. Pacific Ethanol said it will provide information regarding capital plans and synergies when it releases its second quarter 2015 financial results, anticipated in late July 2015.

Aventine's ethanol production assets include its 100 million gal/year wet mill and 60 million gal/year dry mill located in Pekin, Illinois, and its 110 million gal/year and 45 million gal/year dry mills in Aurora, Nebraska. 

Added to Pacific Ethanol's current ethanol production capacity of 200 million gal/year, the combined company will have a total ethanol production capacity of 515 million gal/year. and, together with Pacific Ethanol's marketing business, is expected to sell over 800 million gallons of ethanol annually based on historical volumes.