The Andersons, Inc. to Acquire Harvestone Low Carbon Partners, Expanding Ethanol Production Capacity and Low-Carbon Fuels Capabilities

What happened

The Andersons agreed to acquire Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. HLCP operates three ethanol facilities in North Dakota and Indiana. The deal would add about 215 million gallons of annual production, lifting the combined platform’s capacity to approximately 730 million gallons.

Confirmed

Global impact / market context

The acquisition would expand The Andersons’ ethanol output and add low-carbon production capabilities, potentially increasing revenue from fuel sales and value from tax credits. About half the price is attributed to expected 45Z and 45Q credit cash flows, making those future payments important to the deal’s economics.

Analyst inference

The agreement is not yet a completed acquisition: closing depends on customary conditions and adjustments. The Andersons says the transaction is expected to immediately increase earnings per share, meaning profit allocated to each share, and cash flows, but that outcome remains a company expectation.

Confirmed

What to watch

1. Watch for the deal to close and for the final purchase-price adjustments, since the agreement includes normalized working capital and remains subject to customary closing conditions. Confirmed
2. Track whether the expected 45Z and 45Q tax credit cash flows materialize; roughly half the purchase price is attributed to them, so changes could affect returns. Analyst inference
3. After closing, compare actual earnings per share and cash flows with The Andersons’ expectation of an immediate increase, while noting the article gives no forecast figures. Analyst inference

Evidence

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