Green Plains Inc. announced today that is has acquired the assets of Supreme Cattle Feeders from Agri Beef Co. The asset acquisition includes the feed yard doing business as Supreme Cattle Feeders and the Cimarron Grain storage facility based near Kismet, Kan.
"Supreme Cattle Feeders is one of the premier cattle feed yards in the U.S. and this operation is an ideal adjacent business for Green Plains," stated Todd Becker, President and Chief Executive Officer. "The custom cattle-feeding business gives us the ability to further process our distillers grains and corn oil, and extend our corn origination network. We also believe that this transaction will be accretive to 2014 earnings."
"Supreme Cattle Feeders will remain a custom cattle-feeding business and we are excited to add this asset to our portfolio of value-added processing facilities. Our focus is to ensure that current customers continue to be served at the highest level as both companies are committed to a successful transition. Finally, we expect to retain all of the current employees at the facilities," Becker added.
Robert Rebholtz, Jr., President/CEO of Agri Beef Co. commented, "The key to our decision to sell Supreme Cattle Feeders was Green Plains' financial strength, commitment to operational excellence and risk management capabilities. We are thrilled by the great opportunities this combination will provide Supreme's long-time customers and employees. We look forward to continuing our own cattle-feeding relationship as a Green Plains customer for years to come."
Supreme Cattle Feeders will remain a custom cattle-feeding business and will continue to operate under its current name. Supreme Cattle Feeders financial results will be reported as a part of Green Plains' agribusiness segment. The operation consists of approximately 2,600 acres of land with 800 acres allocated to the feedlot operation that has the capacity to support 70,000 head of cattle. Supreme's current corn storage capacity, including the Cimarron Grain facilities, is approximately 3.8 million bushels. Supreme Cattle Feeders will continue to be directed by its current management team, with transition support from Agri Beef Co. Agri Beef Co will continue its relationship as a cattle-feeding customer of Supreme. Agri Beef Co. has owned and operated Supreme Cattle Feeders for the past 19 years.
About Green Plains Inc.
Green Plains Inc. is a diversified commodity-processing business with operations related to ethanol production, corn oil production, grain handling and storage, and commodity marketing and distribution services. The Company processes over ten million tons of corn annually, producing over one billion gallons of ethanol, three million tons of livestock feed and 250 million pounds of industrial grade corn oil at full capacity. Green Plains also is a partner in a joint venture to commercialize advanced technologies for growing and harvesting algal biomass.
About Agri Beef Co.
Agri Beef Co. was founded in 1968 by Robert Rebholtz, Sr. as a ranching and cattle-feeding company. Today, it includes operations in every step of beef production, including ranching/breeding, cattle feeding, animal nutrition, processing, and beef marketing and sales. Boise, Idaho, serves as the company's headquarters and more than 1,200 people are employed at the company's various locations throughout the Northwest. Agri Beef Co. is internationally recognized, with a portfolio of high quality brands including Snake River Farms American style Kobe Beef and Kurobuta pork, Double R Ranch Northwest Beef, St Helen's Beef, and Ranch El Oro.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements are identified by the use of words such as "anticipates," "believes," "estimates," "expects," "goal," "intends," "plans," "potential," "predicts," "should," "will," 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 cattle-feeding, ethanol and other industries in which the Company operates, commodity market risks including those that may result from current weather conditions, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, risks related to closing and achieving anticipated results from acquisitions, risks associated with the joint venture to commercialize algae production and the growth potential of the algal biomass industry, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2013, and in the Company's subsequent filings with the SEC. In addition, the Company is not obligated, and does not intend, to update any of its forward-looking statements at any time unless an update is required by applicable securities laws.
Source: Green Plains Inc.