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Green Plains Agrees to Sell Tennessee Ethanol Plant to POET

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Key Takeaways

  • Green Plains agreed to sell its Obion ethanol plant for $190M in cash, including $20M in working capital.
  • Proceeds will repay junior mezzanine debt due 2026, strengthening Green Plains' balance sheet.
  • A strategic review affirmed the company's current leadership and focus on operational execution.

Green Plains Inc. (GPRE - Free Report) entered an agreement to sell its Rives, TN-based ethanol plant to POET for $190 million in cash, including $20 million of working capital to be adjusted at transaction closing. The sale of the Obion facility demonstrates Green Plains’ commitment to deliver value to shareholders and strengthen its balance sheet by using the proceeds to pay off the junior mezzanine debt due in 2026. The transaction also aligns with Green Plains’ carbon reduction strategy.

Green Plains expects to complete the transaction in the third quarter this year, although it remains subject to closing conditions, regulatory approvals and contains standard representations, warranties and indemnification obligations. The company also completed its strategic review process that was initiated in February 2024.

The evaluation of the overall company under the strategic review has given a range of alternatives that will position it well to improve operational execution and capital discipline. The review also concluded the company is most likely to deliver shareholder value by continuing with its current strategy under existing leadership.

GPRE stock has lost 21.7% over the past year compared with the industry’s 2.1% decline. 

Zacks Investment Research
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GPRE’s Zacks Rank & Key Picks 

GPRE currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Agnico Eagle MinesLimited (AEM - Free Report) , The Mosaic Company (MOS - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $6.94 per share, implying a 64.07% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. AEM’s shares have gained 72.9% in the past year. 

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters, while missing it in the rest. Its shares have soared 22.6% in the past year. 

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have gained 68.2% in the past year. 

 

 

 

 

 


 

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