US Biomass-Based Diesel Leader to Acquire Majority Ownership Position in one of Europe's Largest Waste-Based Biodiesel Producers
Renewable Energy Group, Inc. (NASDAQ: REGI) and IC Green Energy Ltd. ("ICG") announced today that REG, through a wholly-owned subsidiary, will acquire ICG's majority equity ownership position in German biodiesel producer Petrotec AG (XETRA: PT8). Closing of the transaction is expected before year end.
ICG, Israel Corporation's vehicle for investing in the alternative energy market, today formally accepted an offer from REG European Holdings B.V. to purchase ICG's 69 percent equity ownership in Petrotec AG for US $20.9 million, or US $1.235 per share, to be paid in newly issued REG shares valued at the 30 trading day volume-weighted average for the day prior to signing. The REG subsidiary will also purchase ICG's loan to Petrotec AG in the amount of approximately US $15.4 million. In the next several weeks, REG European Holdings B.V. intends to make a cash tender offer for all other Petrotec shares at a price no less than the value per share to be received by ICG.
"REG's investment in Petrotec is a natural extension of our business strategy which should enable us to better capture value from international trade flows and to participate in European biofuel markets," said Daniel J. Oh, REG President and CEO. "Petrotec's people, culture, business model and technology are similar to ours at REG. We look forward to working with the Petrotec team as REG expands its business into Europe and further delivers the key benefits of our international industry: energy security and diversity, environmental stewardship and food security."
Petrotec is a fully-integrated company utilizing more than 15,000 collection points to gather used cooking oil ("UCO") and other waste feedstocks to produce biodiesel at its two biorefineries in Emden and Oeding, Germany. Petrotec's nameplate production capacity is 55.5 million gallons (185,000 MT) per year, produced predominantly from UCO. Petrotec's collection service, treatment processes, and biorefineries, are certified by both German and European regulators. Its biodiesel is compliant with EU standard EN 14214 and is one of the most sustainable biofuels marketed in Europe. For more information on Petrotec visit their website at http://www.petrotec.de/.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 10 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the expected timing of closing of the Petrotec share acquisition, our ability to capture value and otherwise benefit from the acquisition of majority ownership of Petrotec and our intention to make a cash tender offer for the remaining Petrotec shares. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change. Actual results may differ materially from the forward-looking statements due to a variety of factors including, but not limited to, whether the closing conditions will be satisfied and the acquisition of the majority ownership of Petrotec will be consummated, whether we will be able to successfully manage our investment in Petrotec in Europe, where we have no current operations, risks associated with changes to government policy or regulation, including RFS2 and governmental tax credits and incentives in the US and Europe; changes in the spread between biomass-based diesel prices and feedstock costs; the future price and volatility of feedstocks, petroleum and products derived from petroleum; the effect of excess global capacity in the biomass-based diesel industry; unanticipated changes in the US or European biomass-based diesel markets; seasonal fluctuations in operating results; market competition; dependence on sales to a single customer; technological advances, new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K, quarterly reports on Forms 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.
Contacts:
Renewable Energy Group, Inc.
Anthony Hulen, 703-822-1972
Executive Director, Corporate Affairs
anthony.hulen@regi.com
