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Beacon Energy To Acquire Biodiesel Facility
Cranford NJ (SPX) Feb 22, 2008 Metalico has announced that its biofuel affiliate, Beacon Energy, has entered into an agreement to purchase substantially all of the operating assets of Smithfield BioEnergy, an affiliate of Smithfield Foods, for an undisclosed price. Beacon, formerly known as AgriFuel Co., is an emerging producer and investor in the developing biofuels sector. Metalico, a leading scrap metal recycler and lead products fabricator, owns approximately 47% of Beacon's outstanding stock with the remaining shares of Beacon held by private investors. The Smithfield BioEnergy assets principally consist of an operating biodiesel plant with a production capacity of 12 million gallons per year located in Cleburne, Texas, and associated equipment. The plant utilizes unique state-of-the-art proprietary technology and specializes in the processing of animal fats and other secondary feedstocks. Beacon intends to retain all Smithfield BioEnergy personnel currently associated with the plant's operations and business. Beacon expects to finance the purchases through available cash and proceeds of a private equity placement. Biofuels are alternatives to petroleum-based energy sources made from natural and renewable resources like soybeans and other oil-producing plant materials and animal wastes and byproducts. Beacon focuses on biodiesel within the market for biofuels. Biodiesel is an alternative to various oil distillate products, including diesel and certain home heating oils, that can be used in a variety of diesel engines and home heating systems. Carlos E. Aguero, Chairman of both Beacon and Metalico and a Beacon stockholder, commented, "With the signing of this acquisition, we take a further step in Beacon's development. We continue to explore a number of additional opportunities to invest in or outright acquire already constructed and operating biodiesel production facilities that meet our strategic objectives." "The emerging biodiesel industry is being adversely impacted by the high cost of feedstock relative to the selling price of finished product," he continued. "We believe these conditions will provide further acquisition opportunities and allow Beacon to cautiously accelerate our participation in the industry." "However, our ability to successfully capitalize on these opportunities will be directly related to finding quality operations at compelling valuations and securing the sufficient debt and equity resources to consummate the transactions." The transaction is subject to the satisfaction of customary conditions but is expected to close by the end of the first quarter. Notwithstanding, there can be no assurance that the conditions to closing will be met or that the transaction will be consummated in the first quarter or at all. Calyon Securities (USA) Inc. acted as financial advisor to Smithfield Foods in the transaction. Beacon is handling the transaction internally. Community Email This Article Comment On This Article Related Links Powering The World in the 21st Century at Energy-Daily.com
Agriculture, energy more closely linked
West Lafayette, Ind. (UPI) Feb 21, 2008 U.S. scientists said the recent boom in ethanol production from corn has tightly linked the agriculture and energy sectors in unprecedented fashion. |
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