REG acquires German biodiesel producer Petrotec

Renewable Energy Group (REG) announced today that its wholly-owned subsidiary has completed the acquisition of IC Green Energy’s (ICG) majority equity ownership position in German biodiesel producer Petrotec,

REG purchased ICG’s 69% equity ownership in Petrotec for $20.9 million, or $1.235/share, paid in 2,070,538 newly-issued REG shares. 

REG also purchased ICG’s loan to Petrotec in the amount of approximately $15.4 million. REG says it intends to make a cash tender offer in the next several weeks for all other Petrotec shares at a price no less than the value per share received by ICG.

Petrotec is a fully-integrated company utilizing more than 15,000 collection points to gather used cooking oil (UCO) and other waste feedstocks to produce biodiesel at its two biorefineries in Emden and Oeding, Germany. 

Petrotec’s nameplate production capacity is 55.5 million gal/year (185,000 tpy), produced predominantly from UCO. Petrotec’s collection service, treatment processes, and biorefineries are certified by both German and European regulators. 

The company's biodiesel is compliant with EU standard EN 14214.