FCA Co-op Association completed the acquisition of assets of Lakefield Farmers Elevator, LLC from Heron Lake BioEnergy, LLC.
February 31, 2013 at 11:00 pm EST
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FCA Co-op Association entered into an asset purchase agreement to acquire the assets of Lakefield Farmers Elevator, LLC from Heron Lake BioEnergy, LLC for $3.8 million on January 3, 2013. The transaction involves all the assets owned by Lakefield Farmers Elevator, LLC as on November 27, 2012 excluding cash, cash equivalents, license deposits, accounts receivable, contracts and inventory. On the closing date, the FCA Co-op Association will also make payments for corn and fuel inventory. Post acquisition, Lakefield Farmers Elevator, LLC will cease operations at Lakefield and Wilder locations. FCA Co-op Association has deposited the purchase price of $3.8 million as earnest money with a title insurance company. The transaction is subject to certain conditions including termination of the Corn Storage Agreement and obtaining financing by FCA Co-op Association. The deal is expected to close by January 30, 2013.
FCA Co-op Association completed the acquisition of assets of Lakefield Farmers Elevator, LLC from Heron Lake BioEnergy, LLC on February 1, 2013. Heron Lake BioEnergy will use the proceeds of the sale to pay down its indebtedness to AgStar Financial Services, PCA.
Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillersâ grains with solubles and corn oil as co-products of ethanol production. The Companyâs segments include Ethanol Production and Natural Gas Pipeline. Heron Lake BioEnergy, LLCâs wholly owned subsidiary, HLBE Pipeline Company, LLC (HLBE Pipeline Company), is the sole owner of Agrinatural Gas, LLC (Agrinatural). Agrinatural, is a natural gas pipeline company that owns and operates the natural gas pipeline that provides natural gas to the Companyâs ethanol production facility and other customers through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota.