Renewable Energy Group Completes Syntroleum Acquisition
(AMES, IA) June 3, 2014— Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that its wholly-owned subsidiary, REG Synthetic Fuels, LLC, has closed its acquisition of substantially all of the assets of Syntroleum Corporation.
Syntroleum advised REG earlier Tuesday that a majority of its shareholders had voted to approve the asset sale to REG. Shortly after the Syntroleum stockholders’ meeting, officials from the two companies completed the transaction, which included the issuance of 3,493,613 shares of REG common stock to Syntroleum.
The assets acquired from Syntroleum include a 50% ownership interest in Dynamic Fuels, LLC, which owns a 75 million gallon per year nameplate capacity renewable diesel biorefinery located in Geismar, Louisiana. REG has a separate pending agreement with Tyson Foods, Inc. to acquire the remaining interests in Dynamic Fuels.
Most of the employees at Syntroleum’s Tulsa headquarters will join REG as part of the newly formed REG Synthetic Fuels.
“We are very pleased to bring new advanced biofuel technologies into the REG portfolio of products that will expand our biomass-based diesel business and launch us into new customer segments,” said Daniel J. Oh, Renewable Energy Group, Inc. President and Chief Executive Officer. “We welcome the newest members of our team in Tulsa to REG Synthetic Fuels.”
Syntroleum pioneered renewable diesel fuel and Fischer-Tropsch gas-to-liquids technologies and built a large IP portfolio, including 186 patents issued or pending, which REG will now own. Headquartered in Ames, Iowa, REG owns and operates nine active biorefineries in five states and distributes biodiesel through a national network of distribution terminals.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels and on converting diverse feedstocks into renewable chemicals. With nine biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meets or exceeds ASTM quality specifications. REG sells REG-9000™ biodiesel to distributors so Americans can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000™ biodiesel is distributed in most states in the U.S. REG also markets ultra-low sulfur diesel and heating oil in the northeastern US.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the expansion of REG’s business and IP portfolio as potential benefits of the transaction. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: REG’s ability to successfully integrate Syntroleum’s assets and employees into REG’s existing business: whether Dynamic Fuels will be able to produce renewable diesel profitably, if at all; REG’s ability to successfully utilize the intellectual property assets acquired from Syntroleum; potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; changes in the spread between biodiesel prices and feedstock costs; the future price and volatility of feedstocks; the future price and volatility of petroleum and products derived from petroleum; availability of federal and state governmental tax credits and incentives for biodiesel production; the effect of excess capacity in the biodiesel industry; unanticipated changes in the biodiesel market from which REG generates almost all of its revenues; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K, quarterly reports on Form 10-Q and other periodic filings with the SEC. The forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in its expectations.