OMAHA, NE -- 04/03/08 --
Earlier today, Green Plains Renewable Energy,
Inc. (NASDAQ: GPRE) (AMEX: GPRE) closed the previously-announced merger
with Great Lakes Cooperative. The completion of the merger represents an
important milestone in Green Plains' strategy of becoming a
vertically-integrated, low-cost producer of ethanol.
Great Lakes is a diversified grain merchandising and agribusiness services
company with approximately $146 million in revenues last year. Great Lakes
operates grain storage, agronomy, seed, fertilizer, feed and petroleum
business units at seven sites located in close proximity to Green Plains'
ethanol plant in Superior, Iowa, which is scheduled to begin operations
later this spring. Pursuant to the terms of the merger, Great Lakes became
a wholly-owned subsidiary of Green Plains. The cooperative's name has
changed to Green Plains Grain Company LLC.
"Green Plains is a larger, more competitive company because of today's
merger," said Wayne Hoovestol, Chief Executive Officer. "The integration of
Great Lakes' business units with our ethanol production operation should
increase efficiencies, reduce commodity price and supply risks and
diversify our cash flows. By consolidating these strategic grain assets, we
believe Green Plains will have a competitive advantage in corn procurement.
The merger supports our goal of greater earnings per gallon of ethanol
produced and added shareholder value."
"With the integration of Great Lakes, Green Plains owns grain storage
capacity of approximately 19 million bushels," continued Hoovestol. "The
addition of Great Lakes' agribusiness units allows Green Plains to build
stronger relationships with grain producers, opening the door for future
business opportunities. Furthermore, the addition of Great Lakes'
experienced and knowledgeable workforce will provide a significant benefit
to our organization."
As consideration, Great Lakes' members received approximately $12.5 million
in cash and 550,352 shares of Green Plains' common stock. To finance the
merger and ongoing operational requirements, Green Plains entered into term
and revolving loan agreements with a group of lenders and financial
institutions.
"We are thankful to our lenders for putting together the loan package and
facilitating this agreement in a challenging credit market," said
Hoovestol. "The merger and related financing involved several complex and
unanticipated real estate, equipment and commodity issues. Green Plains
greatly appreciates the patience and cooperation of Great Lakes' board,
employees and members throughout this process."
"Today's merger is the culmination of more than a year's worth of hard work
and careful negotiations," said Kevin Adolf, outgoing Great Lakes
President. "We anticipate that Green Plains will create new opportunities
for agricultural producers. We have confidence in Green Plains' strategy of
vertical integration and look forward to a mutually-beneficial long-term
relationship."
About Green Plains Renewable Energy, Inc.
Ethanol is a high-octane fuel that is blended with gasoline to provide
superior engine performance as well as help to reduce harmful tailpipe and
greenhouse gas emissions that contribute to global warming. Ethanol has
also become a prime source of value-added income for American farmers.
Green Plains, based in Omaha, Nebraska, has the strategy of becoming a
vertically-integrated, low-cost ethanol producer. Green Plains operates a
50 million gallon corn ethanol plant in Shenandoah, Iowa. A second 50
million gallon corn ethanol plant is under construction in Superior, Iowa.
The Superior plant is scheduled to begin production later this spring.
Green Plains has grain storage capacity of approximately 19 million bushels
and provides complementary agronomy, seed, feed, fertilizer and petroleum
services at various sites in the Corn Belt.
This news release contains forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended. Such statements are identified by the use of words such as
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. Such statements
are based on management's current expectations and are subject to various
factors, risks and uncertainties that may cause actual results, outcome of
events, timing and performance to differ materially from those expressed or
implied by such forward-looking statements. Green Plains may experience
significant fluctuations in future operating results due to a number of
economic conditions, including, but not limited to, competition in the
ethanol industry, risks associated with plant construction and technology
development, and other risk factors detailed in Green Plains' SEC filings.
There are also significant risks affecting the business of Great Lakes and
associated with successfully integrating the merger as disclosed in Green
Plains' Form 10-K. Additional information with respect to these and other
factors, which could materially affect Green Plains and its operations, are
included on certain forms Green Plains has filed with the SEC. Green
Plains assumes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Company Contact:
Scott B. Poor
Corporate Counsel / Director of Investor Relations
Green Plains Renewable Energy, Inc.
(402) 884-8700
www.gpreinc.com
Investor Contact:
John Baldissera
BPC Financial Marketing
(800) 368-1217
