Renewable Energy Group (REG) announced to acquire Imperium Renewables. The two companies have signed an asset purchase agreement where REG would acquire substantially all the assets of Imperium, including a 100-million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington.
Under the terms of the agreement, REG will pay Imperium $15 million in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperium’s assets. In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG. For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold. In addition at closing, Imperium will retain its net working capital value of approximately $25 million. REG will also assume $5.2 million of Imperium’s debt from Umpqua Bank, which has agreed to provide REG Grays Harbor, LLC with an additional loan capacity of up to $5 million to fund capital expenditures and improvements at the Grays Harbor facility. Closing is subject to satisfaction of customary closing conditions.
“As we combine our companies, we will expand the reach of REG along the west coast, including production and distribution,” said REG President and CEO Daniel J. Oh. “We already sell into these markets as they have responded to the call for more clean, advanced biofuels through low carbon fuel standards. This will enable REG to be more efficient and timely in our delivery and improve our supply assurance. We look forward to working with Imperium’s experienced staff and plant employees, maintaining operational activities at Grays Harbor, and becoming active members of the community working with the Port of Grays Harbor and the cities of Hoquiam and Aberdeen.”
Based in Ames, Iowa, REG is the leading North American producer and marketer of biomass-based diesel, with 10 active biorefineries across the US and a nationwide production, distribution and logistics system. Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004.