The Andersons, Inc.
) has completed the purchase of an ethanol facility
in Denison, Iowa from Amaizing Energy Dennison LLC and
Amaizing Energy Holding Company, LLC.
The new plant consists of an ethanol production facility with an
adjacent 2.7 million bushel grain terminal. It will carry out its
operations in the west of Mississippi. It would be included in the
Ethanol Group of The Andersons Dennison Ethanol, LLC, a subsidiary
of Andersons. The Ethanol Group generated nearly about 12.7% of the
total revenue in the fourth quarter of 2011.
The Andersons Denison Ethanol LLC was formed to offer investment
opportunities for The Andersons as well as outside investors. The
Andersons will manage the operations, and provide grain
origination, risk management, and DDG and ethanol marketing
The Andersons' Ethanol Group already manages the operations of
three plants - Andersons Albion Ethanol LLC in Michigan, The
Andersons Clymers Ethanol LLC in Indiana and The Andersons Marathon
Ethanol LLC in Ohio.
This is Andersons' first ethanol plant in west Mississippi.
Through this acquisition, Andersons will extend its geographical
boundaries, to diversify and augment the customer base in its
Ethanol Group. It will extend both production and marketing
services in area.
The new facility is expected to render greater efficiency to the
grain market and other, related services of grain producers based
in Iowa. In addition, the new plant would complement the Iowa
Northern Railway Company and Lansing Trade Group LLC.
Andersons generates the majority of its revenue from the Grain
and Ethanol Group. It contributed nearly 80% in the fourth quarter
of 2011. The company makes constant efforts to upgrade the business
and strengthen its market position in the face of growing
The Andersons shares currently retain a Zacks #2 Rank
(short-term Buy recommendation). It competes with companies like
Archer Daniels Midland Company
) and privately-held Cargill, Inc.
Based in Maumee, Ohio, The Andersons is a diversified company
operating in five different business segments. These range from
buying, selling and storing grain, to leasing railcars and running
retail stores to cater to the latest home hardware needs. The
company has operations across the U.S. and in Puerto Rico, in
addition to rail equipment leasing interests in Canada and
ARCHER DANIELS (ADM): Free Stock Analysis
ANDERSONS INC (ANDE): Free Stock Analysis
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