The Renewable Energy Group, Inc. has finalized its acquisition of Sanimax Energy’s biodiesel plant in DeForest, Wisconsin. The 20 million gallon per year facility, now called REG Madison, LLC, is now REG’s 11 active biodiesel plant in the U.S. and brings their annual production to 450 million gallons.
REG paid Sanimax $11 million in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the volume of biodiesel produced at the plant.
“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG Vice President, Manufacturing. “We welcome the newest members of our team at REG Madison and are proud to be a part of the DeForest community.”
Most of the biodiesel employees have agreed to stay on with REG. The biorefinery is located just north of Madison, Wisconsin and began production in 2007 using yellow grease, rendered animal fats and inedible corn oil. It uses the same REG patented high free fatty acid processing technology as its plant in Seneca, Illinois.