Amaizing Energy Holding Company, LLC announced Tuesday the signing of an agreement to sell its ethanol production facility in Denison to The Andersons, Inc.
The transaction, which remains subject to several contingencies, is anticipated to close in the second quarter of 2012.
A contingency to the transaction is obtaining the approval of the members of Amaizing Energy Cooperative who have a controlling interest in the Amaizing Energy Holding Company, LLC.
Amaizing's operations consist of a 40 million gallon nameplate ethanol facility with an adjacent 2.7 million bushel grain terminal, both with direct access to two Class I railroads in Iowa.
The plant is currently operating at a rate of approximately 55 million gallons per year.
Sam Cogdill, chairman and CEO of Amaizing Energy, stated, "The proposed sale to The Anderson's will address the liquidity concerns of Amaizing Energy's membership while retaining the economic benefits the Denison facility has in the local area. Our investors committed equity to Amaizing Energy to earn a good return on their investment and to further local economic development and we feel great about having met both of those goals. Placing Amaizing Energy on the market while it is a profitable operation has allowed us to reach a fair deal with a great company who we believe will properly operate our plant in the future."
Amaizing Energy Cooperative's board of directors emphasized that the members of the Amaizing Energy Cooperative will soon be receiving notice of a member meeting currently scheduled for March 28 where they will be asked to approve the transaction. The meeting notice will contain the details of the proposed transaction.
"It is our hope that all members of Amaizing Energy Cooperative will turn out for the member meeting in late March to learn about the details of the proposed transaction and take the opportunity to vote on the deal," said Gene Gochenour, a member of the board of directors of both Amaizing Energy Cooperative and the Amaizing Energy Holding Company.
Mike Anderson, CEO of The Andersons, Inc., added, 'This is a well-respected, well-run organization that brings with it a solid customer base in a geographic area that we are looking forward to serving. We will extend our same value system of providing extraordinary customer service and enjoying lasting relationships in this new region."
Amaizing Energy Denison, LLC is a wholly owned subsidiary of Amaizing Energy Holding Company, LLC. Amaizing Energy owns and operates a dry-mill ethanol plant in Denison that is currently operating at a rate of approximately 55 million gallons per year. The western Iowa facility was designed and constructed by Fagen, Inc. and commenced operations in September 2005. Amaizing Energy currently has 42 full time employees responsible for operating its facility and prides itself on providing quality jobs, quality products and consistent returns to its owners. For more information visit www.amzenergy.com.
The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations across the United States, in Puerto Rico, and has rail equipment leasing interests in Canada and Mexico. For more information, visit www.andersonsinc.com.