Benzinga | Nov 8, 2021 08:42AM EST

Alto Ingredients Reports Sale Of Its Stockton Facility For $24M In Cash

Alto Ingredients, Inc. (NASDAQ:ALTO), a leading producer of specialty alcohols and essential ingredients, announced today it has sold its fuel ethanol production facility in Stockton, CA to Pelican Acquisition LLC for $24.0 million in cash, of which $16.2 million of the proceeds were used to retire the remaining portion of the company's outstanding term debt. The company is now term debt free.

Michael Kandris, Alto Ingredients' president and CEO, stated, "With the sale of our Stockton facility, we have successfully completed the rationalization of our fuel-grade ethanol operations. The benefits of this effort are significant, improving the company's profitability, strengthening our balance sheet, and retiring all of Alto's remaining high-cost and restrictive term debt.

"Through our subsidiary Kinergy Marketing, LLC, Alto Ingredients will continue to support the Stockton facility as a terminal for renewable fuel sales. Upon the resumption of the Stockton production facility, Kinergy Marketing will be the exclusive marketer for the production gallons."

Tom Zuckerman, Managing Member of Pelican, stated, "This completes the first stage of our efforts to revitalize a valuable asset of the Stockton economy and to improve the environmental and economic health of the Sacramento-San Joaquin Delta through clean transportation fuel and deep geologic sequestration of greenhouse gases. We are most grateful for the support of the Port of Stockton, the Bank of Stockton, Dohrmann Insurance and our investors, all of whom have deep roots in the Delta Community."

Kandris concluded, "Moving forward, we are now in a strong position to build on our high value specialty alcohols and essential ingredients, focusing our resources on driving profitable growth and progressing our strategic initiatives."