Murphy USA Sells North Dakota Ethanol Plant
EL DORADO, Ark. -- Murphy USA Inc. completed the sale of its Hankinson Renewable Energy LLC wholly owned subsidiary, which owns and operates the Hankinson, N.D., ethanol plant.
The plant was sold to Guardian Hankinson LLC for $170 million, plus estimated inventory and net working capital at closing of approximately $3 million.
"This is a major step in executing our strategy to exit non-core businesses while realizing significant value for our shareholders. The proceeds provide additional financial flexibility to continue our growth plans while reducing our long-term debt," said Andrew Clyde, president and CEO of Murphy USA. "I am confident that Guardian Hankinson LLC will continue to be a great employer of the plant's staff, support the town of Hankinson and the surrounding communities, while maintaining strong relationships with the plant's vendors and suppliers."
The plant produces 132 million gallons per year of ethanol. El Dorado, Ark.-based Murphy USA Inc. was spun off from Murphy Oil Corp. on Aug. 30. It operates 1,200 Murphy USA and Murphy Express locations.