Renewable Energy Group Inc., a U.S. producer of biodiesel from animal fats and grease, agreed to buy Tyson Foods Inc.’s 50 percent stake in Dynamic Fuels LLC. It’s in the process of acquiring the other half of the company through a deal announced in December.
Renewable Energy Group will pay $18 million in cash and repay $12 million in debt that Dynamic owes to Tyson, the Ames, Iowa-based biodiesel producer said today in a statement. It will also make as much as $35 million in future payments to the largest U.S. meat producer, tied to production at Dynamic’s biorefinery in Geismar, Louisiana,
Renewable Energy Group said in December it would acquire Syntroleum Corp., a 50-50 joint venture between Tyson and Dynamic, and today’s deal is contingent upon the completion of that $41.8 million transaction. The two purchases will give Renewable Energy Group full ownership of Dynamic’s plant, which has annual production capacity of 75 million gallons (284 million liters) of biodiesel.