Carl Marks Acts as Exclusive Financial Advisor in Sale of Hawkeye Ethanol Plants to Flint Hills Resources

NEW YORK, Sept. 13 /PRNewswire/ -- Hawkeye Growth LLC, an Iowa-based ethanol production company, has completed a sale of its two production facilities to Flint Hills Resources LP, a subsidiary of Koch Industries Inc., one of the largest private companies in the world.  Terms of the sale of Hawkeye's Menlo and Shell Rock, Iowa, plants were not disclosed.  The plants each produce approximately 110 million gallons of ethanol annually.  The investment banking group of Carl Marks Advisory Group LLC acted as exclusive M&A and financial advisor to The Royal Bank of Scotland (RBS), the collateral agent for the senior secured lenders to the owner of the plants.  

Both plants began operations in 2008, and each employs nearly 50 individuals.  Together, the plants produce approximately 220 million gallons of ethanol annually.  For Flint Hills, a leading Midwest producer of transportation fuels and the largest purchaser of ethanol in Minnesota, the acquisition launches the company's entry into the ethanol production industry and gives it an opportunity to compete more fully in the fuels market.

"The sale of the Hawkeye Growth assets is a significant and strategic transaction for RBS and an excellent opportunity for Flint Hills to build on their already considerable presence in the ethanol industry," said Mark L. Claster, president of Carl Marks and partner of Carl Marks Advisory Group.  "The deal is an outstanding outcome for both parties."

"Carl Marks' experience and unparalleled knowledge of the ethanol M&A market was invaluable in helping us to maximize recovery on the secured indebtedness," said Joe Sileo, senior vice president, RBS. "The Carl Marks team led by Mark Claster, Chris Wu and Scott Chabina skillfully managed the sale process and was instrumental in assisting us close this important transaction."

About Carl Marks Advisory Group LLC and Carl Marks Securities LLC

Carl Marks Advisory Group LLC, with offices in New York, Vienna, Va., Bedminster, N.J., and Charlotte, N.C., provides a wide array of investment banking and financial, operational and real estate advisory services to the middle market, including mergers and acquisitions advice, sourcing of capital, financial restructuring plans, strategic business assessments, improvement plans and interim management.

Carl Marks Securities LLC, based in New York, assists its clients in executing private placements of debt and equity. The firm is a member of FINRA and SIPC. Additional information about Carl Marks Advisory Group LLC and Carl Marks Securities LLC is available at www.carlmarks.com.

SOURCE Carl Marks Advisory Group LLC