Pacific Ethanol To Acquire Aventine Renewable Energy Holdings - Quick Facts

(RTTNews) - Pacific Ethanol Inc. (PEIX), and Aventine Renewable Energy Holdings, Inc. announced they have entered into a definitive merger agreement under which Pacific Ethanol will acquire all of Aventine's outstanding shares in a stock-for-stock merger transaction. Aventine is a Midwest-based producer of ethanol and related co-products. It will be operated as Pacific Ethanol's wholly-owned subsidiary. Aventine has $135 million in term loan debt.

Pacific Ethanol expects the transaction will more than double its annual ethanol production capacity. Once closed, the deal is expected to be immediately accretive to earnings.

Pacific Ethanol expects to issue approximately 17.75 million shares of its common stock upon closing in exchange for all of the issued and outstanding shares of Aventine's common stock. Upon completion, existing Pacific Ethanol shareholders will own approximately 58% of the issued and outstanding shares of common stock of the combined entity, and Aventine will nominate two representatives to be named later to Pacific Ethanol's board, increasing the total board count to nine.