The Deal
The Andersons, Inc. (Nasdaq: ANDE) has agreed to acquire Harvestone Low Carbon Partners (HLCP) from Energy Capital Partners for $915 million, a transaction that would expand the Maumee, Ohio-based agribusiness company's ethanol production capacity by more than 40% and position it among the small group of U.S. producers with operating carbon capture and sequestration infrastructure.
HLCP owns and operates three ethanol production facilities — two in North Dakota and one in Indiana — with combined annual output of approximately 215 million gallons. The addition lifts The Andersons' pro forma ethanol capacity to roughly 730 million gallons per year. Approximately half of the $915 million purchase price is attributed to expected cash flows from 45Z and 45Q federal tax credits, with the balance assigned to base ethanol operations and additional low-carbon project opportunities.
Financing and Balance Sheet
The Andersons plans to fund the acquisition through roughly $300 million drawn on its existing revolving credit facility and $615 million in new long-term debt, with committed financing provided by U.S. Bank National Association and Farm Credit Mid-America, PCA. Pro forma long-term debt-to-EBITDA is projected to remain below the company's stated ceiling of 2.5 times. Management characterized the transaction as immediately accretive to earnings per share and cash flows.
"We have been evaluating ethanol plant acquisition opportunities for several years, and HLCP is exactly what we have been looking for," said Bill Krueger, President and Chief Executive Officer of The Andersons. "Its production economics, established low-carbon ethanol capabilities, and strategically advantaged locations complement our existing network and together represent a combination that is difficult to replicate."
Why It Matters
The deal carries meaningful strategic weight for the broader renewable fuels supply chain. HLCP's facilities already operate Class VI CO₂ injection infrastructure for carbon sequestration — a capability that most planned U.S. ethanol CCS projects have yet to bring online. That operating status gives The Andersons an immediate competitive advantage in low-carbon fuel markets, where lower carbon-intensity scores can command premium pricing over conventional ethanol.
The North Dakota plants extend The Andersons' reach into the Western Corn Belt, adding corn procurement economics and logistics infrastructure in a region the company did not previously serve at scale. The Indiana facility slots into the company's existing Eastern Corn Belt operations. Both geographies feed into HLCP's established customer relationships in low-carbon fuel markets, including California's Low Carbon Fuel Standard-driven demand pool.
The Andersons also expects to layer its grain origination, merchandising, and logistics capabilities onto HLCP's production base, targeting synergies in feedstock procurement and co-product monetization — specifically distillers dried grains with solubles (DDGS) and distillers corn oil. The company's Regenerative Ag programs are slated for rollout across the acquired facilities post-closing.
For operators and buyers across the food-grade ethanol and co-products markets, the consolidation reduces the number of independent low-carbon ethanol producers and concentrates more Class VI CCS capacity under a single publicly traded entity, potentially influencing spot and contract pricing dynamics in premium fuel and industrial markets. Goldman Sachs & Co. LLC advised The Andersons financially; Polsinelli PC served as legal counsel. The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to regulatory clearance and customary conditions.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
