Private label ingredient producer ADM is selling its Peoria, Ill., ethanol production complex to BioUrja Group, an energy and agriculture commodity supply group. The facility produces ethanol, a chemical compound used in drugs, plastics and more, and is looking to use the facility to the explore alcohol category.
ADM supplies ingredients for companies in industries such as food and beverage, animal nutrition, industrials and fuel. The company recently bolstered its private label pet products business through a series of company acquisitions.
“The sale of our Peoria facility is an important element of the strategic review of our dry mill ethanol assets,” said ADM CEO Juan Luciano. “By reducing our ethanol capacity by 135 million gallons and redeploying the resulting capital to other strategic growth investments, we’re continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago. We continue to execute on our strategic priorities, and we are excited about the opportunities ahead of us as we drive sustainable growth.”
For BioUria's part, the company said it is enthused about the growing beverage-grade and highly-distilled industrial alcohol markets, which are the focus of the Peoria plant, and are glad to absorb supplemental fuel ethanol into its existing supply capabilities. "This is an opportunity for us to continue our growth in the renewables sector and participate in the global energy transition. It’s a double bottom-line deal for us because of the strong financial performance of the plant and its contributions to our ESG strategy,” said Amit Bhandari, BioUrja Group’s chairman and CEO.
The deal is expected to close in the coming weeks, and ADM will work closely with BioUrja to ensure a transition of the approximately 150 employees at the facility.
“I’d like to thank our colleagues in Peoria, who have done superb work, including as we flexed to meet surging customer needs for industrial alcohol for use in hand sanitizer last year,” Luciano said. “We appreciate their dedication, and know they’ll be a tremendous asset for BioUrja.”
“We welcome ADM’s Peoria plant employees to our family,” said BioUrja Group COO Shék Jain. “We know that they are excellent performers and are dedicated to ensuring the plant is run with exceptional care. We are proud to include them in our team. We are also grateful for ADM’s corporate personnel, who worked tirelessly in ensuring the success of this transaction.”