Green Plains completes Cargill feed yard acquisition
May 17, 2017
BY Green Plains Inc.
Green Plains Inc. recently announced that its subsidiary, Green Plains Cattle Co., completed the previously announced acquisition of two cattle feed yards from Cargill for approximately $36.7 million, excluding working capital. The transaction includes feed yards located in Leoti, Kansas, and Yuma, Colorado, adding capacity of 155,000 head to the company's operations, and positions Green Plains Cattle Co. as the fourth largest cattle feeder in the United States with total capacity of more than 255,000 head.
"This acquisition achieves scale in our cattle feeding operations and creates significant internal demand for our ethanol co-products," said Todd Becker, president and chief executive officer of Green Plains. "We will use our risk management expertise to optimize this acquisition's contributions and further diversify our earnings stream."
The company also entered into a long-term supply agreement with Cargill Meat Solutions to provide a reliable supply of cattle from the Leoti and Yuma locations, as well as Green Plains' existing feedlot in Kismet, Kansas. The transaction was financed using cash on hand.
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