WATERTOWN, SD (KXLG) – Advanced BioEnergy, LLC announced today that together with its subsidiary, ABE South Dakota LLC, it has entered into an Asset Purchase Agreement with Glacial Lakes Energy, based in Watertown. Under the agreement, the company will sell its Aberdeen and Huron, South Dakota ethanol plants to GLE for 47.5 million dollars, plus the value of ABE inventory at the time of closing. GLE CEO Jim Seurer (SIRE) says GLE has always been interested in growing the company. He says the Aberdeen plant is currently producing about 50 million gallons of ethanol yearly.
Seurer says there are currently about 4,000 shareholders holding stock with Glacial Lakes Energy.
Seurer said GLE is still bullish on ethanol, although they have to get the administration to see things their way.
Closing of the transaction is subject to approval of the ABE unit holders and other customary closing conditions. The company will continue to operate its two ethanol plants in Huron and Aberdeen, South Dakota until the transaction closes. In connection with the sale ABE will be adopting a plan of liquidation under which the company will be liquidated and the proceeds of the sale will be distributed to unit holders, after payment of the company’s outstanding debt, transaction related expenses and other expenses related to the plan of liquidation.