In a $250 million transaction this month, including working capital, Green Plains acquired Fleischmann’s Vinegar, financed with $135 million of debt with the balance paid from cash on hand. A group of lenders led by Maranon Capital, L.P provided a $130 million term loan and a $15 million revolving line of credit for this business unit. A Strategic rationale of taking advantage of the Green Plains platform and expertise – the primary raw material in vinegar production is food-grade ethanol.
But what’s the rest of the strategic rationale — what’s the value proposition? Green Plains gave this presentation deck recently to explore the synergies between ethanol and acetic acid (vinegar) production.