Green Biologics, Inc. (“GBI”), a technology developer and emerging bio-based chemicals producer based in Gahanna, Ohio, and Central MN Ethanol Co-op (“CMEC”), an ethanol producer in Little Falls, MN, today announced that Green Biologics, Inc. has entered into an exclusive letter of intent to acquire substantially all of CMEC’s assets.
While both parties have reached preliminary agreement on the key terms of the proposed transaction, the final terms to be documented in the Asset Purchase Agreement are currently being negotiated and all related documentation finalized. Among other things, the proposed transaction is subject to customary closing conditions and regulatory approvals, including the approval of CMEC’s members. CMEC will seek member approval upon completion of the proposed Asset Purchase Agreement and distribution of CMEC’s informational materials to its shareholders. Timing of the transaction closing is expected in 2014.
In announcing this proposed transaction, CMEC’s CEO, Dana Persson stated, “CMEC fully examined its strategic alternatives and considered other proposals prior to entering into the exclusive Letter of Intent with Green Biologics, Inc. We chose Green Biologics as we believe its proposal represents the highest value to our shareholders.”
“After significant deliberation, we consider this agreement is in the best long-term interests of CMEC’s shareholders, employees, corn growers and the community at large. Green Biologics brings exciting new technology and product lines to the Little Falls facility. The Board of Directors and Management team will meet in the near future with shareholders to discuss Green Biologics’ offer and the process for seeking approval of the proposed transaction by CMEC’s shareholders.
In the interim, corn purchases, ethanol and co-product production efforts will continue in full force. Employees will produce and deliver high-quality products as usual, with no interruption of ethanol and co-products deliveries to our customers.”
Commenting upon the transaction, Joel Stone, President, Green Biologics, Inc. said, “We assessed a number of attractive acquisition alternatives prior to executing this letter of intent with CMEC. We could not be more pleased with the quality of the facility, the caliber of the workforce, and the strong support CMEC receives from its existing corn growers and the community at large. This is critically important to us as we will continue to procure locally grown corn from area producers. CMEC has been a leader and a pioneer in the U.S. ethanol industry. It is our intention that the Central MN facility will continue to carry on that tradition as a leader and a pioneer in the U.S. renewable n-butanol industry.”
Ocean Park Advisors acted as exclusive financial advisor to Central MN Ethanol Co-op on this transaction.
About Central MN Ethanol Co-op
Established in 1995, Central MN Ethanol Co-op is an ethanol production company based in Little Falls, Minnesota. Located in the northern Corn Belt, CMEC purchases 7.5 million bushels of corn annually and produces 21 million gallons of ethanol per year. The plant also generates revenue from ethanol co-products, including dried distillers grains, wet distillers grains, corn oil and syrup.
About Green Biologics
Green Biologics Inc. is a wholly owned U.S. subsidiary of Green Biologics Ltd., a UK industrial biotechnology company, founded in Oxford in 2003. Green Biologics, Inc. is based near Columbus, Ohio where it maintains laboratories, pilot facilities and corporate offices. Green Biologics specializes in the manufacture of renewable C4 chemicals and advanced biofuels. The company’s core focus is n-butanol, a backbone chemical used in paints, coatings, adhesives, inks, plastics, pharmaceuticals, food ingredients, household cleaners and personal care products with global markets exceeding $6 billion. Green Biologics has developed advanced fermentation technology to produce renewable n-butanol from a wide range of feedstocks, including corn and cellulosic feedstocks such as agricultural and forestry residuals and municipal solid waste. Green Biologics has laboratory and production facilities in the U.K. and the U.S. and operates globally in Europe, North America, China, India and Brazil.
About Ocean Park Advisors, LLC
Ocean Park Advisors, LLC is a corporate finance advisory firm that advises on mergers and acquisitions, financings and restructurings with extensive experience in the biofuels and cleantech industries. Ocean Park Advisors, LLC operates a branch office of Stonnington Group LLC, a member of FINRA and SIPC. Any securities are offered through Stonnington Group LLC, 515 South Figueroa Street, Suite 1100, Los Angeles, CA 90071, (213) 683-4511. Ocean Park’s professionals are licensed registered representatives of Stonnington Group.
Green Biologics, Inc., press release, 2013-09-11.