VeraSun invests $725m

VeraSun Energy Corporation today announced plans to acquire three ethanol plants with a combined annual production capacity of 330 million gallons per year (MMGY) from ASAlliances Biofuels for $725m.

The three facilities are each expected to operate at 110MMGY and are located in Albion, Nebraska, Bloomingburg, Ohio, and Linden, Indiana. The acquisition is subject to customary closing conditions.

According to a statement, the facilities will provide VeraSun with immediate production capacity and revenue. The Linden facility will begin start-up operations this month, followed by Albion in the fourth quarter and Bloomingburg by the end of first quarter 2008. The acquisition will increase VeraSun's production capacity to approximately one billion gallons by the end of 2008.

‘This is a unique opportunity to acquire immediate production and revenue at a cost similar to that of building new facilities,’ said Don Endres, VeraSun Chairman and CEO.