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.
