The Andersons to acquire Harvestone Low Carbon Partners for $915 million
The Andersons, Inc. has reached a $915 million agreement to acquire Harvestone Low Carbon Partners, expanding its renewable fuel capacity and carbon capture capabilities.
The Andersons, Inc. has entered into a definitive agreement to purchase Harvestone Low Carbon Partners (HLCP) from Energy Capital Partners for $915 million. The deal adds three ethanol production facilities in North Dakota and Indiana to the company's portfolio, increasing its total annual production capacity by approximately 40% to 730 million gallons.
A key component of the acquisition is HLCP’s existing carbon capture and sequestration (CCS) infrastructure. This technology allows for the production of low-carbon ethanol, positioning The Andersons to capture value from premium fuel markets and federal tax incentives, including 45Z and 45Q credits. Approximately half of the purchase price is tied to projected cash flows from these tax credits.
CEO Bill Krueger stated that the acquisition aligns with the company’s long-term strategy to grow its low-carbon production platform. The Andersons intends to finance the transaction through a mix of $300 million in existing revolving credit and $615 million in new long-term debt.
The company projects that the acquisition will be immediately accretive to earnings per share and cash flow. The transaction remains subject to customary closing conditions.