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AgStar Announces Sale of Dyersville, Iowa, Ethanol Plant


Wed, Aug 5th, 2009
Posted in Business Announcements

Mankato, Minn. - AgStar Financial Services' lending group announces the sale of the Dyersville, Iowa, ethanol plant acquired through VeraSun Energy's bankruptcy in March of 2009. River Valley Energy, LLC, is a wholly owned subsidiary of United Cooperative, headquartered in Beaver Dam, Wis. A binding purchase agreement has been signed and the sale is expected to close by Sept. 1, 2009. River Valley Energy plans to have the plant fully operational within 30 days of the closing date.



"We are very excited to acquire the Dyersville, Iowa, facility," stated David A. Cramer, President and CEO of River Valley Energy. "We look forward to a long and prosperous relationship with the community of Dyersville, local producers, area grain elevators, and of course, AgStar Financial Services."



This purchase agreement represents AgStar lending group's second plant sale this week. Guardian Energy recently signed an agreement to purchase the Janesville, Minn., plant. "Ethanol has encountered continued volatility but recent conditions have shown signs of stabilization. This is a viable industry," stated Paul DeBriyn, President and CEO of AgStar. "We're excited to know these plants will soon be operational, creating jobs in rural areas, purchasing corn, producing ethanol, and dried-distillers grain (DDG's) for livestock producers."



"This facility has a nameplate production capacity of 100 million gallons per year, and we're permitted to produce up to 120 million gallons per year," stated Cramer. "On top of generating fuel that helps to reduce our dependence on foreign oil and making the air we breathe cleaner, River Valley Energy will convert approximately 39 million bushels of corn per year, further supporting American farmers."



AgStar will continue to lead a group of lenders in financing this plant. The lending group continues ongoing discussions with qualified buyers for the lone remaining VeraSun ethanol plant (purchased at auction) in Hankinson, N.D. "It takes a fair amount of time to work through the sales process for this type of facility, and we look forward to making an announcement on the Hankinson plant," added DeBriyn.



Terms of the agreement are not being disclosed.



About AgStar:

AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 610 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. The company has expertise in the corn, soybean, swine, dairy, and bio-energy industries. AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting, and rural home mortgages. As a value-added financial services cooperative, AgStar allocates patronage dividends to its 13,000 stockholders. Visit www.agstar.com for more information.



About River Valley Energy, LLC:

River Valley Energy is a wholly owned subsidiary of United Cooperative. Formed in 1936, United Cooperative, based out of Beaver Dam, Wis., is a full-service cooperative offering, feed, grain, agronomy, and energy products and services to Wisconsin farmers and consumers. United Cooperative employs more than 500 rural Wisconsin citizens and takes great pride in being a financially-sound, American-owned cooperative. With state-of-the-art feed mill locations; more than 20 million bushels of grain storage; access to the Wisconsin Southern Railroad and Union Pacific railroad; more than 90,000 tons of liquid and dry fertilizer storage; fuel, lubricant, and propane facilities; and all the services and accommodations that accompany these features, United Cooperative is able to efficiently serve all their members' needs. In addition, United Cooperative started investing in the ethanol industry in 2005. Today, they are the managing member of United Ethanol, LLC, Milton, Wis., and an active investor in Carbon Green BioEnergy, Woodbury, Mich. For more information about United Cooperative, visit www.unitedcooperative.com.

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