CHS signs agreement to acquire Illinois River Energy ethanol plant
ST. PAUL, Minnesota, April 30, 2014 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN), North America's leading farmer-owned cooperative and a global energy, grains and foods company, today announced it has signed an agreement with Sinav Limited, London, England, to acquire 100 percent of the company's stock, which includes Illinois River Energy, LLC, a 133-million-gallon-per-year ethanol plant at Rochelle, Illinois.
Providing all conditions are met, the transaction is expected to close in June.
"Illinois River Energy is a top-tier ethanol plant, well-situated in a strategic growth area that will add value to our farmer-owners through expanded grain origination, additional renewable fuels gallons and distillers grain by-products," said Mark Palmquist, CHS executive vice president and chief operating officer, Ag Business.
CHS markets renewable fuels to energy customers across the U.S. and through 1,400 Cenex- branded retail petroleum outlets, including more than 1,000 Cenex® convenience stores, and markets dried distillers grains with solubles (DDGS) globally on behalf of more than 20 ethanol plants across the United States.
"We have enjoyed a strong business relationship with CHS as they have been our ethanol marketer since the start of Illinois River Energy operations in 2006. Today, we look forward to formally joining CHS and adding value to the global cooperative as an ethanol, DDGS, and distillers corn oil producer," said Richard Ruebe, CEO, Illinois River Energy.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
Ascendant Financial Partners served as the exclusive merger and acquisition advisor to Sinav. Ascendant is a leading business and financial advisor serving clients in the agribusiness, food and renewable energy industries. Ascendant Financial Partners is a registered FINRA broker/dealer.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2013, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
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