The Andersons to buy Harvestone Low Carbon Partners for $915 million
+2 new sources since this summary was written
The Andersons, Inc. announced a definitive agreement to acquire Harvestone Low Carbon Partners, a low‑carbon ethanol producer, for $915 million. The transaction adds three biorefineries with about 215 million gallons of annual ethanol capacity and carbon‑capture infrastructure, expanding The Andersons’ renewables platform by more than 40% to roughly 730 million gallons. The purchase price is split roughly half on expected 45Z and 45Q tax‑credit cash flows and half on the underlying ethanol assets. The deal is slated to close in the fourth quarter of 2026 or early the first quarter of 2027, subject to regulatory approvals.
Why it matters
The acquisition is projected to be immediately accretive to earnings per share and cash flow, enhancing The Andersons’ financial flexibility. Adding low‑carbon ethanol capacity gives the company access to premium fuel markets and a competitive advantage through operating carbon‑capture facilities.
Key facts
- 1The purchase price is $915 million, with about half tied to anticipated 45Z and 45Q tax‑credit cash flows. prnewswire.com
- 2The deal adds three ethanol plants that together produce roughly 215 million gallons per year. prnewswire.com
- 3Combined post‑transaction ethanol capacity will be about 730 million gallons annually, a >40% increase for The Andersons. prnewswire.com
- 4Financing will consist of approximately $300 million in revolving‑credit borrowings and $615 million in additional long‑term debt. prnewswire.com
- 5Pro‑forma long‑term debt‑to‑EBITDA is expected to stay below the company’s target of 2.5× after the acquisition. prnewswire.com
- 6The transaction is slated to close in Q4 2026 or early Q1 2027, pending required regulatory approvals. investing.com
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.