Green Plains Inc. (NASDAQ:GPRE) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement |
Asset Purchase Agreement
On April26, 2017, Green Plains Inc. announced that its
subsidiary, Green Plains Cattle Company LLC (GP Cattle), has
entered into an asset purchase agreement to acquire two
cattle-feeding operations from Cargill Cattle Feeders, LLC for
$36.7million, plus certain working capital adjustments. The
transaction includes the feed yards located in Leoti, Kansas and
Yuma, Colorado and will add combined feedlot capacity of 155,000
head of cattle to the companys operations.
The Leoti and Yuma feeding operations consist of approximately
1,900 acres of land, supporting infrastructure and feed storage
assets, and are strategically located near major meat packers.
The transaction is anticipated to be completed in the next 30
days subject to customary closing conditions and regulatory
approvals. The transaction will be financed using cash on hand.
As part of the transaction, GP Cattle also will enter into a
long-term cattle supply agreement with Cargill Meat Solutions
Corporation. Under the cattle supply agreement, all cattle placed
in the Leoti, Yuma and GP Cattles existing Kismet, Kansas
feedlots will be sold exclusively to Cargill Meat Solutions under
an agreed upon production and pricing arrangement.
The foregoing description of the Purchase Agreement is not
complete and is qualified in its entirety by reference to the
full text of the Purchase Agreement, which is filed as Exhibit
2.1 to this Current Report on Form 8-K, and is incorporated into
this Item 1.01 by reference.
| Item8.01. | Other Events. |
On April26, 2017, Green Plains issued a press release announcing
the acquisition of the feedlots. The press release is attached
hereto as Exhibit 99.1 and is incorporated herein by reference.
| Item9.01. | Financial Statements and Exhibits |
(d) Exhibits
|
Exhibit |
Description |
|
| 2.1 |
Asset Purchase Agreement, dated as of April25, 2017, by and among Green Plains Cattle Company LLC, and Cargill Cattle Feeders, LLC. * |
|
| 99.1 | Press Release dated April26, 2017. |
| * |
The schedules referenced in the Asset Purchase Agreement have been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the Securities and Exchange Commission upon request. |
About Green Plains Inc. (NASDAQ:GPRE)
Green Plains Inc. (Green Plains) is a vertically integrated producer, marketer and distributor of ethanol. The Company operates through four segments: Ethanol Production, Agribusiness, Marketing and Distribution, and Partnership. The Company’s ethanol production segment is engaged in the production of ethanol and related distillers grain. Its ethanol production segment includes over 10 ethanol plants in Indiana, Iowa, Michigan, Minnesota, Nebraska, Tennessee, Texas and Virginia. The Company owns and operates grain handling and storage assets through its agribusiness segment. The Company’s marketing and distribution segment is engaged in marketing and providing logistical services for ethanol and other commodities for a third-party ethanol producer. The Company’s partnership segment provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses. Green Plains Inc. (NASDAQ:GPRE) Recent Trading Information
Green Plains Inc. (NASDAQ:GPRE) closed its last trading session 00.00 at 23.60 with 607,198 shares trading hands.
