M&A
confidence high
sentiment positive
materiality 0.85
Gevo, Inc. (GEVO): M&A transaction — Gevo closes $210M acquisition of Red Trail Energy assets, expects $30-60M annual adjusted EBITDA
Gevo, Inc.
- Acquired ethanol plant, CCS assets, and pore space in Richardton, ND for $210M, subject to adjustments.
- Funded with cash and a $105M senior secured term loan from OIC (Orion Infrastructure Capital) maturing Jan 31, 2030.
- OIC also invested $5M equity in Net-Zero North and expressed interest in up to $100M additional for future growth.
- Acquisition expected to contribute $30M to $60M of Adjusted EBITDA annually; assets renamed 'Net-Zero North'.
- Plant's carbon intensity score projected in low 20s using GREET model, about 30 points lower than non-CCS plants.