Benzinga | Apr 28, 2021 08:37AM EDT

Alto Ingredients Enters Into Agreement To Sell Its Madera Facility

Alto Ingredients, Inc. (NASDAQ:ALTO), a leading producer of specialty alcohols and essential ingredients, announced today it has signed a definitive agreement with Seaboard Energy California, LLC ("Seaboard") to sell its fuel ethanol production facility in Madera, CA for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities. The sale of the 40 million gallon per year facility is expected to close in the second quarter of 2021, subject to customary closing conditions. The majority of the cash proceeds will be used to retire company debt.



Michael Kandris, Alto Ingredients, Inc.'s president and CEO, stated, "We further optimized our production footprint with the sale of our Madera facility, which will reduce the carrying cost associated with our idled plants. We are in discussions to sell our other idled California facility in Stockton and will announce those terms once an agreement has been reached."