Aurora Co-op Buys Ethanol Plants, Elevator in Nebraska

Aurora Cooperative Elevator Co. entered into a definitive agreement to purchase Pacific Ethanol Inc.’s ownership interest in Pacific Aurora LLC, including its two ethanol production plants and a grain elevator located in Nebraska. 

Pacific Ethanol announced in a press release Tuesday that it expects to receive a consideration of $27 million in cash and $16.5 million in promissory notes when the deal closes. The company currently holds a 26% interest in Pacific Aurora. 

“The sale of our interest is a win-win for both companies, strengthening Pacific Ethanol’s balance sheet while providing Aurora Cooperative with full ownership of these assets,” the president and CEO of Pacific Ethanol, Neil Koehler, said in a statement. “We are confident that under Aurora Cooperative’s capable management and farmer ownership the facilities will provide value to the local community and overall ethanol industry.”

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The two ethanol plants have a combined capacity of 145 million gal/yr. Pacific Aurora’s grain elevator features a storage capacity of 4.1 million bushels and integrated rail facilities, according to the company. All of the assets are located in Aurora, NE. 

“This investment is a great opportunity for Aurora Cooperative, its owners, and the communities that we support. We understand the significance that these two ethanol plants, grain facilities, and rail assets mean to our owners,” said Chris Vincent, president and CEO of Aurora Cooperative, in the release. “We look forward to these assets providing long term value for our owners, our cooperative, and our communities.”

Elsewhere in Nebraska, a massive fire broke out earlier this week at the Michael Foods egg processing plant in Bloomfield, NE, killing about 400,000 chickens at the site, Powder & Bulk Solids reported. St. Louis-based Post Holdings, Michael Foods’ parent company, said in a statement last Thursday that the fire affected under 5% of Michael Foods’ internal and external layer network. The company expects losses from damages to the structure and disruptions to the business to total $2.5 million. 

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