World Grain - February 2011 - 90

BIOFUELS QUARTERLY: BIOFUELS NEWS REVIEW

DuPont to acquire Danisco for $6.3 billion
WILMINGTON, DELAWARE, U.S. — DuPont announced on Jan. 9 that it has entered into a deﬁnitive agreement for the acquisition of Danisco, a global enzyme and specialty food ingredients company, for $5.8 billion in cash and assumption of $500 million of Danisco net debt. Upon closing, this transaction would establish DuPont as a clear leader in industrial biotechnology with science-intensive innovations that address global challenges in food production and reduced fossil fuel consumption, the company said. “Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth,” said DuPont Chair and Chief Executive Ofﬁcer Ellen Kullman. “Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences. “This transaction is a perfect strategic ﬁt with our growth opportunities and will help us solve global challenges presented by dramatic population growth in the decades to come, speciﬁcally related to food and energy. In addition, biotechnology and specialty food ingredients have the potential to change the landscape of industries, such as substituting renewable materials for fossil fuel processes and addressing food needs in developing economies that will generate more sustainable solutions and create growth for the company.” The acquisition is expected to be ﬁnanced with about $3 billion in existing cash and the remainder in debt. The transaction is expected to close early in the second quarter and be cash and earnings accretive in 2012, the ﬁrst full year of the combined entity. DuPont has set its 2011 earnings per share outlook at a range of $3.30 to $3.60 per share. The anticipated impact of this transaction would reduce that outlook by 30¢ to 45¢ per share on a reported basis. “Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D pipeline, and specialty food ingredients, a combination that offers attractive long-term ﬁnancial returns. This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings,” said Kullman.

Green Plains signs agreement to acquire Otter Tail Ag
OMAHA, NEBRASKA, U.S. — Green Plains Renewable Energy, Inc. announced on Jan. 10 that it has signed an asset purchase agreement with Otter Tail Ag Enterprises, LLC to acquire its 55-milliongallon-per-year-capacity dry mill ethanol plant near Fergus Falls, Minnesota, U.S. The proposed transaction is anticipated to progress through a court-approved bankruptcy proceeding initiated by Otter Tail Ag Enterprises, LLC. If conﬁrmed by the court, Green Plains’ bid would then be considered the stalking horse in an asset auction to be held in the next 60 days. There can be no assurances that Green Plains’ bid will be the winning bid among qualifying bids. “We remain focused on our growth strategy of acquiring operating assets that expand our ethanol platform and contribute immediately to our ﬁnancial results,” said Todd Becker, president and chief executive ofﬁcer of Green Plains Renewable Energy. “If we are successful in the auction process, we believe our proven management capabilities will add value for all stakeholders.” If completed, the acquisition would increase Green Plains’ ethanol production capacity by approximately 8% to an annual capacity of 712 million gallons. Green Plains plans to ﬁnance the transaction through a mix of available cash on hand and debt ﬁnancing from existing lenders.

Raptor Fabrication completes Florida biodiesel plant
GROVELAND, FLORIDA, U.S. — Raptor Technology Group, Inc. announced Jan. 11 that the company it is in the process of acquiring — Raptor Fabrication and Equipment, Inc. — has started up its newest biodiesel plant for its customer, Greenwave Biodiesel of Fort Lauderdale, Florida, U.S. The facility successfully produced its ﬁrst batch of ASTM-certiﬁed biodiesel and will now begin its commercial production of biodiesel fuel. The Greenwave facility utilizes Raptor’s ﬂagship mid-sized, multifeedstock production system and is capable of producing 3.6 million gallons of biodiesel per year. System production can be remotely monitored by Raptor to insure maximum efﬁciency and up time. “The Greenwave plant is our ﬁrst launch of the new year, and we have introduced exciting new remote monitoring technology in the plant, giving us the ability to monitor production and diagnose any problems increasing overall production and customer satisfaction,” said Tom Gleason, president and chief executive ofﬁcer of Raptor Fabrication and Equipment. “With the reinstatement of the federal biodiesel tax-credit and facilities we currently have in production for customers, 2011 is expected to be a strong year for Raptor,” added Gleason.

China Integrated Energy to acquire land for biodiesel facility
HAINAN, CHINA — China Integrated Energy, Inc. (formerly China Bio Energy Holding Co., Ltd.) announced on Jan. 4 that it has signed a non-binding letter of intent to acquire all of the assets of Hainan Lin Gao Chemical Co., Ltd., a biodiesel production company, for a total cash consideration of approximately $9 million. Both the companies are based in China. As part of the transaction, the acquisition includes a land use right to approximately 15 acres of land, an oil storage facility with 15,000 cubic meters of storage capacity and built-in infrastructure including power, water and waste treatment. China Integrated also plans to build a 300,000-tonne biodiesel plant at this facility in Lin Gao County, Hainan Province, China. Phase one, which includes a production facility with 100,000-tonne capacity, is expected to commence production approximately 12 months after the closing of the transaction, which is expected to be by the end of the ﬁrst quarter of 2011.

February 2011 / World Grain / www.World-Grain.com

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World Grain - February 2011

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