OMAHA, NEBRASKA, U.S. — Green Plains Cattle Co., a subsidiary of Green Plains Inc., has signed a definitive agreement to acquire two cattle-feeding operations in Sublette, Kansas, U.S., and Tulia, Texas, U.S., from Bartlett Cattle Co. LC for approximately $16 million, plus working capital totaling approximately $109 million.
The feed yard operations, which consist of approximately 2,100 acres of land, grain storage and water sources, have a combined capacity of approximately 97,000 head. The acquisition will bring Green Plain Cattle’s feeding operations to 355,000 head, including its purchase of two feed yards from Cargill this past May, which added 155,000 head to its operations.
“Our success in cattle feeding over the last four years gives us confidence to continue growing in this area and adding the Bartlett cattle-feeding operations fits seamlessly into our protein growth strategy,” said Todd Becker, president and chief executive officer of Green Plains. “Expanding our feeding operations by 38% strengthens our ability to further supply our internal demand for the distillers grains and corn oil we produce. This acquisition will be immediately accretive to our earnings in the third quarter and enhances our ability to deliver more stable and consistent earnings to our shareholders.”
On Aug. 1, Green Plains Inc. announced its financial results for the second quarter of 2018. The company said it sustained a loss of $1 million in the quarter, which compared with a loss of $16.4 million in the same period in 2017. Revenues were $986.8 million for the second quarter of 2018, up from $886.3 million a year ago.
“Our second quarter had a solid financial performance from our non-ethanol businesses, led by a record quarter in our food and ingredients segment driven by performance in our cattle feeding operations and strong grain handling margins in our ag and energy services segment,” Becker said. “We also experienced improvement in our ethanol production segment, generating a consolidated ethanol crush margin of $25.6 million, or approximately 9¢ per gallon.”