VeraSun Closes On Asset Sale with Valero
April 02, 2009
VeraSun Energy Corp. on Wednesday announced that it closed on the sale of assets to Valero Renewable Fuels that included five ethanol production facilities and a development site. The sale closed at 12:01 a.m. CDT, Wednesday. The facilities are located in Aurora, S.D.; Fort Dodge, Charles City, and Hartley, Iowa; and Welcome, Minn., and the development site is in Reynolds, Ind.
VeraSun Energy selected Valero Renewable Fuels as the successful bidder for seven of its ethanol production facilities and the development site on March 17, 2009, as part of an auction sale process. Valero Renewable Fuels is a subsidiary of Valero Energy Corporation, North America's largest petroleum refiner and marketer based in San Antonio, Texas. Valero purchased the ethanol production facilities in Aurora, Fort Dodge, Charles City, Hartley and Welcome, in addition to the Reynolds site, for $350 million. This group of assets was part of a "stalking horse" bid submitted by Valero in early February.
Valero also successfully bid $72 million for the Albert City facility and $55 million for the Albion facility. The purchase price also includes working capital and other certain adjustments. Closing on the Albert City and Albion facilities is expected in the coming weeks.
VeraSun also expects to close on the sale of its remaining facilities in the next several weeks.
Source: VeraSun Energy Corp.
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