Business
Alto Ingredients, Inc. Acquires CO2 Processing Plant Adjacent to Columbia Facility, Bolstering Economics and Increasing Asset Valuation
- Secures improved, long-term CO2 sales contract,creating immediate bottom-line accretion and future financial upside - PEKIN, Ill., Jan. 06, 2025 (GLOBE
About this update from Alto Ingredients, Inc.
[{"type":"text","content":"- Secures improved, long-term CO2 sales contract,creating immediate bottom-line accretion and future financial upside - PEKIN, Ill., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, announced its wholly-owned subsidiary, Alto Carbonic, LLC, has acquired Kodiak Carbonic, LLC, a beverage-grade liquid carbon dioxide (CO2) processor, for $7.25 million in cash plus working capital on January 1, 2025. The transaction includes an improved, long-term contract for the sale of beverage-grade CO2, which will be immediately accretive to the bottom line, has a compelling payback timeline and provides potential expansion opportunities. Alto Carbonic, co-located in Boardman, OR, utilizes CO2 gas produced from Alto Ingredients’ Columbia plant to produce and sell liquid CO2 in the Northwestern region of the United States for applications in food and beverage processing, industrial cooling, and other industries. The facility, operational since 2015, has the capacity to process over 200 tons of liquid CO2 daily. “In our ongoing pursuit to optimize product value, we identified the beverage-grade liquid CO2 plant as a significant opportunity and pursued the acquisition to continue to expand our premium ingredients portfolio,” said Alto Ingredients’ President and CEO Bryon McGregor. “By entering into an improved long-term off-take contract with a leading supplier of gases and related products and services, we further de-risk the future cash flows from this acquisition. Overall, we have augmented our CO2 operations, positioning the Columbia facility to grow sales, improve distribution efficiency, and expand margins. The transaction boosts our economics and strengthens our asset valuation.” About Alto Ingredients, Inc.Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information, please visit www.altoingredients.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 State...