REG paid Sanimax $11 million in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant, which is now called REG Madison, LLC.
“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG Vice President, Manufacturing. “We welcome the newest members of our team at REG Madison and are proud to be a part of the DeForest community.”
Most of the biodiesel employees have agreed to stay on with REG. The biorefinery is located just north of Madison, Wisconsin and began production in 2007. Using the same REG patented and proven high free fatty acid processing technology as the Company’s Seneca, Illinois plant, REG Madison produces biodiesel from lower cost, lower carbon intensity feedstocks including yellow grease, rendered animal fats, and inedible corn oil in addition to refined vegetable oils. The facility has both truck and rail capabilities.
This is the first Wisconsin plant for REG, which now owns and operates 11 active biomass-based diesel refineries in seven states with a combined nameplate production capacity of 452 million gallons annually. A formal grand opening will be announced at a later date.