ALL Fuels Agrees to Valero's Offer of $100
Million to Sell the Renew Energy Ethanol Plant in
Jefferson, Wisconsin.Valero Then Says ''No Deal''
February 03, 2010 04:43 PM Eastern Time
DES MOINES, Iowa--(EON: Enhanced Online News)--ALL Fuels & Energy announced that its subsidiary, ALL
Fuels - Jefferson, LLC, has agreed to Valero’s offer price of $100 million for the purchase of Renew Energy from
Valero Renewable Energy. The $100 million cash price ALL Fuels – Jefferson LLC agreed to pay Valero is $28
million more than the $72 million winning bid made by Valero for Renew, which was confirmed by the bankruptcy
court on December 11, 2009 on the motion of secured creditor Bankers Bank, based on the recommendation of
William Blair & Company, LLC, the financial advisor for the sale.
The $100 million offer by ALL Fuels – Jefferson resulted from negotiations over the last few weeks, after ALL Fuels
was unsuccessful in overturning bankruptcy court approval of the sale of Renew to Valero, claiming that Wm. Blair
and Banker’s Bank had rejected ALL Fuel’s better offer at the time of the auction for no good reason. ALL Fuels
had offered $77 million in the auction. “The terms of the auction were not followed in good faith” said Dean
Sukowatey, President of ALL Fuels, “Our bid exceeded the successful Valero bid by $5 million, but Bankers Bank,
Valero and Wm. Blair unilaterally discounted our offer, in order to terminate the auction and accept Valero’s bid.
We negotiated in good faith, and were ready to go much higher, but the auction was prematurely terminated. To
purchase Renew Energy, we had no choice but to deal directly with Valero, and bid up the price even before the
closing has taken place.”
On Tuesday, January 19, 2010, ALL Fuels offered Valero $82 million cash for Renew. Valero countered the ALL
Fuels $82 million bid at $100 million. On Friday, January 29, ALL Fuels accepted Valero’s $100 million
counteroffer. Valero’s closing with Bankers Bank is now set for Thursday, February 4, 2010.