OMAHA, NEB. — Green Plains Inc., a commodity manufacturer now processing high-protein pet food and feed ingredients, on Jan. 5 acquired a majority stake in Fluid Quip Technologies to expand production.
The acquisition is part of a joint transaction led by Ospraie Management LLC. As a result of the deal, Ospraie acquired 550,000 shares of Green Plains stock at $22 per share, the company reported.
“We believe the Fluid Quip IP portfolio has many game changing valuable technologies that the world needs right now,” said Dwight Anderson, managing partner of Ospraie. “Whether it’s their clean sugar patent suite that creates new, low-cost carbohydrate sources for potential use in synthetic biology, food production, or industrial biochemical fermentation, or their patent library on creating high protein ingredients for pet food, aquaculture and other high value feed products, this all improves the environmental impact of feed solutions using inputs from farmers.
“Sustainable protein solutions are healthier, more efficient and less harmful to the global food system including, reducing the carbon footprint of production agriculture,” Anderson added.
Green Plains was previously focused as an ethanol and commodities manufacturer but has recently shifted to focus on value-added ingredient solutions for pet food and animal feed. The company announced it had begun such production at its facility in Shenandoah, Iowa in April 2020.
“The partnership between Fluid Quip, Ospraie, and Green Plains will accelerate our path to our 2023 transformation from a commodity-processing business to a value-add agriculture, food technology and industrial biotechnology company focusing on creating diverse, non-cyclical, higher margin products while improving the environmental and carbon footprint of food and feed,” said Todd Becker, president and chief executive officer of Green Plains.
“This partnership will help advance the installation of Ultra-High Protein technology across our platform, significantly increase our renewable corn oil production to participate in the growing low carbon fuel markets and the renewable diesel value chain, further drive reduction of our operating expenses and significantly expand our product offerings,” Becker said.
The acquisition is also expected to enhance Green Plains’ engineering expertise, intellectual property portfolio and operational efficiencies, Becker added.
“When you combine all of our partnerships into one innovation and financial engine with the rapid advancements that are already taking place, we believe the results will be truly revolutionary,” he said. “Through this combination, we believe we are squarely positioned to deliver unmatched value as a leader in sustainable, nutritious products created through fermentation of renewable resources using a full suite of world-class technologies.”
All Fluid Quip employees will be retained under Green Plains’ ownership.
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