Renewable Energy Group To Buy Imperium Renewables

(RTTNews) - Renewable Energy Group, Inc. (REGI) said Friday that it has agreed to buy substantially all the assets of Imperium Renewables, Inc., including a 100-million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington.

Under the deal, Renewable Energy Group will pay Imperium $15 million in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperium's assets. In addition to those payments, Renewable Energy Group will pay either $1.75 million in cash or 175,000 shares of its common stock at closing as elected by Renewable Energy Group. For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold. In addition at closing, Imperium will retain its net working capital value of about $25 million.

Renewable Energy Group will also assume $5.2 million of Imperium's debt from Umpqua Bank, which has agreed to provide REG Grays Harbor, LLC with an additional loan capacity of up to $5 million to fund capital expenditures and improvements at the Grays Harbor facility.