Renewable Energy Group, Inc. (REG), has signed a purchase agreement to acquire the largest assets of U.S. Biodiesel Group (USBG), including USBG’s biodiesel production facility near Houston and an existing liquid storage terminal in California.
The parties anticipate the deal, valued at $80 million, to close in late June, subject to regulatory approval.
"USBG’s 35 MGY biodiesel production facility near Houston, Texas and a liquid storage terminal location in California will offer REG access to strategic locations with deepwater, pipeline and rail accessibility," explained REG’s Chairman and CEO, Jeff Stroburg.
USBG is a portfolio company of U.S. Renewables Group, LLC (USRG), a private equity fund that develops, acquires and manages renewable power and fuels projects.
The 35 MGY biodiesel production facility, to be known as "REG Houston" upon closing of the deal, is located within a terminal site operated by LBC Houston LP, Tank Terminals. The terminal is located in Seabrook, TX, adjacent to the Houston Ship Channel, one of the most important petrochemical and pipeline complexes in the world.
The California liquid storage terminal will considerably enhance REG’s current ability to distribute biodiesel along the West Coast. The site also has the potential to accommodate a commercial-scale biodiesel production facility. Although planning and permitting to expand the site into a biodiesel production facility continues, the final timing and construction plans remain to be determined.
The REG network includes seven plants in production with combined capacity of more than 220 million gallons annually.
About Renewable Energy Group, Inc.
Renewable Energy Group, Inc., (REG) is a biodiesel industry sales leader and is a full-service biodiesel company offering plant management, risk management, raw material procurement, plant construction management, and biodiesel production, sales and marketing services. REG’s network of biodiesel production facilities includes a biodiesel plant and management of third party-owned plants. Renewable Energy Group, Inc., markets biodiesel to fuel distributors and customers in many industries including on-highway fleets, municipal transit authorities, maritime, military, home heating and agriculture industries.
To learn more about Renewable Energy Group, Inc. please visit
About US Renewables Group: US Renewables Group, LLC (USRG) was formed to manage a series of private equity funds (including USRG Power & Biofuels Fund I, LP and USRG Power & Biofuels Fund II, LP) that acquire, develop and operate renewable power and clean fuel assets. To date, the firm has made 18 investments in geothermal, biomass, solar thermal, landfill methane, ethanol, biodiesel and associated infrastructure, and has approximately $575 million under management. USRG has offices in Los Angeles and New York. For more information, visit www.usregroup.com.
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