CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM), a global leader in nutrition and agricultural origination and processing, announced today that it has reached an agreement to sell its ethanol production complex in Peoria, Illinois, to BioUrja Group.
“The sale of our Peoria facility is an important element of the strategic review of our dry mill ethanol assets,” said ADM CEO Juan Luciano. “By reducing our ethanol capacity by 135 million gallons and redeploying the resulting capital to other strategic growth investments, we’re continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago. We continue to execute on our strategic priorities, and we are excited about the opportunities ahead of us as we drive sustainable growth.”
BioUrja Group’s Chairman & CEO, Amit Bhandari, remarked that: “As a leading supplier of biofuels, we are excited to enter into the bio-ethanol production sector and become more vertically integrated. We are enthused about the growing beverage-grade and highly-distilled industrial alcohol markets, which are the focus of the Peoria plant, and are glad to absorb supplemental fuel ethanol into our existing supply capabilities. This is an opportunity for us to continue our growth in the renewables sector and participate in the global energy transition. It’s a double bottom-line deal for us because of the strong financial performance of the plant and its contributions to our ESG strategy.”
The deal is expected to close in the coming weeks. ADM will work closely with BioUrja to ensure a smooth transition of the approximately 150 colleagues at Peoria.
“I’d like to thank our colleagues in Peoria, who have done superb work, including as we flexed to meet surging customer needs for industrial alcohol for use in hand sanitizer last year,” Luciano continued. “We appreciate their dedication, and know they’ll be a tremendous asset for BioUrja.”
BioUrja Group’s Chief Operating Officer, Shék Jain, who managed the transaction on BioUrja’s behalf, echoed those sentiments by stating: “We welcome ADM’s Peoria plant employees to our family. We know that they are excellent performers and are dedicated to ensuring the plant is run with exceptional care. We are proud to include them in our team. We are also grateful for ADM’s corporate personnel, who worked tirelessly in ensuring the success of this transaction.”