One of the largest co-ops in the state is combining some of its Nebraska assets with those owned by a California-based ethanol company to create a new entity.
Aurora Cooperative Elevator Company said it will combine its Aurora West Grain Elevator, loop track, related land and other assets with the two Aurora ethanol plants and related assets owned by Pacific Ethanol. The Aurora co-op also is contributing $30 million in cash.
The combined entity will be called Pacific Aurora LLC. Aurora Cooperative will have a 26 percent ownership stake in the company.
Chris Vincent, president and CEO of the Aurora co-op, said combining the two entities' Aurora operations would lead to efficiencies and increased performance. "Aurora Cooperative will use its years of grain origination and operations experience combined with Pacific Ethanol's production expertise to greatly benefit Pacific Aurora LLC," he said in a news release. "Bringing both companies’ resources together benefits our collective stockholders and adds value and strength to our communities, the State of Nebraska and both the ethanol and grain industries.”
Aurora Cooperative is the 34th-largest agricultural co-op in the U.S., with $1 billion in sales and 80 locations in seven states. Pacific Ethanol owns eight ethanol plants in five states, with total production capacity of 515 gallons.