VOLNEY, N.Y. — A Georgia firm has completed its acquisition of Sunoco LP’s (NYSE: SUN) corn ethanol plant and grain-malting operation at 376 Owens Road in the town of Volney.
Attis Industries Inc. (NASDAQ: ATIS) acquired the nameplate 100 million gallon per year, corn-ethanol plant and grain-malting operations for $20 million in cash with non-dilutive financing, the company said in a Monday news release.
Attis plans to spend $80 million to renovate the facility into a research and development campus for renewable fuels, the company previously said. As part of this plan, the company also expects to add up to 100 new high-paying, skilled jobs in the region.
(Sponsored)
Small Business Accounting Errors and How to Avoid Them
Running a small business presents many challenges, which can draw your attention in multiple directions at once. Keeping track of your company’s finances is essential to its long-term success and
How Technology Management Can Expedite Your Business Growth
Many business leaders find themselves asking the same question: “How do I foster growth for my company?” The answer typically yields many paths and variables both controllable and uncontrollable. Technology
The transaction includes a six-month transition-services agreement as well as a 10-year agreement for Sunoco to purchase all ethanol produced at the facility, “creating exceptional stability” for Attis as it expands the capabilities of the facility over the next two years, Attis contends.
The ethanol plant “immediately becomes an essential element” of Attis’ current operations and will be “pivotal” in the firm’s expanding technology portfolio as it develops the site into a green tech campus, the firm noted.
“We are incredibly excited to announce the acquisition of the Fulton corn ethanol plant and grain-malting operations,” Jeff Cosman, CEO of Attis Industries, said in the release. “This acquisition is an important milestone for Attis as we embark on our mission to be a significant contributor to the global renewable fuel market.”
Milton, Georgia–based Attis Industries describes itself as a “diversified innovation and technology holding company.” Attis’ management team has a “long-standing” relationship with Sunoco and the operational team in place at the Volney ethanol facility, per the release.
“When evaluating potential locations for Attis to establish a foothold in the renewable fuel space, the Fulton site was an obvious choice based on its strategic location to the strong northeastern fuel market, state-of-the-art and well-maintained facility as well as site expandability for future upgrades in operations,” said Cosman. “These desirable site attributes, as well as the state of New York’s continued commitment to the growth of green energy, made Fulton an ideal fit for Attis.”
1886 Malt House
Included within the acquisition is the 1886 Malt House which is a direct beneficiary of incentives designed to promote the local farm to brewery industry.
The 1886 Malt House is located on the site of the Sunoco agri-business complex in Volney, per its website. Sunoco in 2015 announced the creation of the craft-malting facility co-located with the Sunoco ethanol plant, per the Sunoco ethanol website.
In 2013, New York created a farm-brewery law to provide licenses only to those farmers whose beer is made primarily from locally grown farm products, Attis said. Under this program, the Malt House will receive some tax-exempt status and contribute to the $4 billion per year craft-brewery business in the state of New York.
Contact Reinhardt at ereinhardt@cnybj.com
