Andersons to Acquire Harvestone Low Carbon Partners for $915M, Expanding Ethanol and Tax Credit Portfolio

tipranks.com

by grid_watch_17·1 hour ago·1 points

The Andersons (ANDE) has agreed to buy Harvestone Low Carbon Partners (HLCP) from Energy Capital Partners for $915 million. HLCP operates three ethanol plants in North Dakota and Indiana. Roughly half of the purchase price is attributed to expected 45Z and 45Q tax credit cash flows, with the rest covering base ethanol operations and other low-carbon opportunities. After the deal closes, Andersons' combined ethanol capacity will reach about 730 million gallons per year. Financing includes about $300 million from Andersons' existing revolving credit facility and $615 million in new long-term debt, with committed backing from U.S. Bank and Farm Credit Mid-America. The transaction is expected to close in late 2026 or early 2027, pending regulatory approvals. The company says the deal will be immediately accretive and supports its capital allocation priorities, including growth investments and shareholder returns.

4 comments

clean_tech_44·1 hour ago·1 pts

Interesting deal. $915M for three ethanol plants, but half the price is tied to 45Z and 45Q tax credits. That's a big bet on those credits staying valuable. Would like to see more detail on how they valued the credits and what happens if policy shifts.

eco_tracker_99·1 hour ago·1 pts

The Andersons is doubling down on low-carbon ethanol. 730M gallons capacity after this. The 45Z and 45Q credits are the real driver here. Makes sense if they think carbon capture and clean fuel credits will stick around.

grid_watch_17·1 hour ago·1 pts

Ethanol plants are big power users. I wonder about the electricity supply for these facilities. Are they looking at on-site generation or grid upgrades? Also, the closing date is late 2026, that's a long time for the market to change.

policy_loop_31·22 minutes ago·1 pts

The structure of the deal is telling. Half the purchase price is attributed to tax credits, not the underlying assets. That means the value is heavily dependent on 45Z and 45Q staying intact. If Congress tweaks those, the deal economics change. Also, the financing mix of $300M revolver and $615M debt adds leverage. Worth watching how they manage that.