Hawkeye Renewables has declared that it has signed an agreement with Flint Hills Resources Renewables for sale of its ethanol plants situated in Fairbank and Iowa Falls in Iowa. Flint Hills Resources Renewables is an affiliate company of Flint Hills Resources and Koch Industries.
The transaction was an all cash one and is subject to the normal closing conditions. It is expected to close in the first quarter of 2011. Hawkeye has taken consent from its equity holders for this transaction.
After undergoing a chapter 11 restructuring on 18th June 2010, Hawkeye came out under a new team of equity owners. James V. Continenza, Hawkeye’s Chairman of the Board of Directors, commented that the company had made considerable progress in improving the operations of the company during the past six months. This agreement with Flint Hills will add to the solid foundation that has been developed and conclude successfully the strategic overview undertaken by the Board for increasing the equity holders value. He further added that he was convinced that Flint Hills would be a dedicated operator in Iowa and work tirelessly for developing and maintaining relationships with Hawkeye’s existing base of farmers, suppliers and vendors.
Hawkeye is a producer of 225 million gallons of ethanol annually along with dried distiller grains. Even after the sales of the two plants Hawkeye Energy Holdings would continue to manage the Renewables’ plants through its subsidiary, Hawkeye Gold, it would market the ethanol and distillers grains. It also owns two plants in Menlo and Shell Rock, Iowa.