BROOKINGS, S.D. (AP) -- Ethanol producer VeraSun Energy Corp. said Monday it is buying three ethanol plants from ASAlliances Biofuels LLC for $725 million.
The acquisition will be funded with $250 million in cash, $200 million of equity and $275 million in project financing.
The facilities have a combined annual production capacity of 330 million gallons per year and are each expected to operate at 110 million gallons per year. VeraSun currently has 340 million gallons per year of production capacity, with another 330 million gallons per year under construction and development.
The plants are located in Albion, Neb.; Bloomingburg, Ohio, and Linden, Ind. The Linden facility will begin operating this month, with Albion coming on line in the fourth quarter and Bloomingburg operating by early 2008.
ASAlliances Biofuels plant workers will become VeraSun employees when the sale closes, which is expected in 30 to 45 days.
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