Corrected: US REG close to finishing deals for three biodiesel plants

10 February 2010 17:00  [Source: ICIS news]

REG to acquire three plantsCorrection: In the ICIS news story headlined “US REG close to finishing deals for three biodiesel plants” dated 10 February 2010, please read in the fifth paragraph … would bring REG's total capacity to 302m gal/year … instead of … would bring REG's total capacity to 362m gal/year…. A corrected story follows.

GRAPEVINE, Texas (ICIS news)--Renewable Energy Group (REG)
, the largest supplier of biodiesel in the US, is expected to close the acquisitions of three biodiesel companies by the end of February, company sources said on Wednesday.

Under the deal, Iowa-based REG would acquire Western Iowa Energy, which operates a 30m gal/year facility in Wall Lake, Iowa; Central Iowa Energy, which operates a 30m gal/year facility in Newton, Iowa; and Blackhawk Biofuels, which operates a 45m gal/year facility in Danville, Illinois, company president and chief operating officer Daniel Oh said on the sidelines of the 2010 National Biodiesel Conference

The completion of the deals is pending approval from the companies' investors, a process that is expected to finish by the end of February, REG spokeswoman Alica Clancy said. 

Clancy declined to say how much the deals were worth, only that REG would use mostly stock for the purchases.

The acquisitions would bring REG's total capacity to 302m gal/year. The company wholly owns 212m gal/year worth of capacity and manages the remainder for third-party companies. 

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