Business
Alto Ingredients Acquires Eagle Alcohol Company, a Leading Distributor of Specialty Alcohols
- Downstream integration expected to increase margins, reduce volatility, and create access to new markets -- Acquisition expected to be immediately accretive
About this update from Alto Ingredients, Inc.
[{"type":"text","content":"- Downstream integration expected to increase margins, reduce volatility, and create access to new markets -- Acquisition expected to be immediately accretive and grow Adjusted EBITDA by $7 million to $9 million annually in 2023 and beyond -- Closing purchase price funded with cash on hand - SACRAMENTO, Calif., Jan. 18, 2022 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, has acquired Eagle Alcohol Company LLC, a leading distributor of specialty alcohols headquartered in St. Louis, Missouri. The acquisition is expected be immediately accretive and grow Adjusted EBITDA by $7 million to $9 million annually in 2023 and beyond, including expected synergies. Eagle specializes in break bulk distribution of specialty alcohols. The company purchases bulk alcohol from suppliers, including Alto. Then it stores, denatures, packages, and resells alcohol products in smaller sizes, including tank trucks, totes, and drums, that garner a premium to bulk alcohols. Eagle delivers products to customers in the beverage, food, pharma, and related-process industries via its own dedicated trucking fleet and common carrier. Eagle generated over $35 million in revenues in 2021. Eagle is now a wholly owned subsidiary of Alto, and its former president Dan Croghan, will remain with the company and has been named Vice President of Alto and General Manager of Eagle. Croghan and his team bring over 60 years of combined experience and expertise in the chemical and alcohol distribution industry. “We have been aggressively diversifying our business to focus on specialty alcohols and essential ingredients. By acquiring an established leader in premium alcohol distribution, we expand our scope of offerings, customer base, and commercial opportunities as well as significantly accelerate our penetration of new high-margin markets,” said Michael Kandris, Alto Ingredients’ president and CEO. “Eagle’s St. Louis distribution center specializes in small-packaged products preferred by a large segment of the specialty alcohol market, including beverage alcohol companies. Combining Alto’s low-cost bulk production with Eagle’s differentiated distribution capabilities and customer relationships is expected to lower our exposure to bulk alcohol price volatility, increase our margins, and create new ...