The Andersons, Inc. to Acquire Harvestone Low Carbon Partners, Expanding Ethanol Production Capacity and Low-Carbon Fuels Capabilities

Approximately half the purchase price is attributed to expected 45Z and 45Q tax credit cash flows.

Rhea-AI Summary

The Andersons (Nasdaq: ANDE) signed a definitive agreement to acquire Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. The acquisition adds three ethanol plants in North Dakota and Indiana and approximately 215 million gallons of annual production, expanding its Renewables platform by more than 40%. Combined annual capacity would be approximately 730 million gallons.

Approximately half the price reflects expected 45Z and 45Q tax credit cash flows. The assets include operating carbon capture and underground storage infrastructure. Planned financing comprises approximately $300 million in revolving-credit borrowings and $615 million in additional long-term debt. The company expects immediate earnings-per-share and cash-flow accretion and closing in the fourth quarter of 2026 or early first quarter of 2027, subject to required regulatory approvals and customary closing conditions.

7 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Harvestone acquisition would add approximately 215 million gallons of annual ethanol production, expanding Renewables by more than 40%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.The Andersons expects immediate earnings-per-share and cash-flow accretion from the transaction.
• Moderate pointAcquisition financing is committed by U.S. Bank National Association and Farm Credit Mid-America.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acquisition brings operating carbon capture and storage infrastructure and demonstrated carbon dioxide injection capabilities.
• Minor point. Forward-looking: it has not happened yet and may not happen.The Andersons projects pro forma long-term debt-to-EBITDA below 2.5x, within its stated target.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Acquired plants extend operations into North Dakota and complement existing operations in Indiana.
• Minor point. Forward-looking: it has not happened yet and may not happen.The Andersons identifies potential procurement and logistics benefits from integrating Harvestone with its existing business.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Planned acquisition borrowing adds approximately $300 million under revolving credit and $615 million in additional long-term debt.
• Minor pointAcquisition closing remains subject to required regulatory approvals, with completion expected in late 2026 or early 2027.

News Explained

Committed financing backs the planned borrowing, with projected post-deal leverage below the company’s stated target.

The signed acquisition remains subject to closing conditions, and U.S. Bank and Farm Credit Mid-America have provided committed financing for the planned borrowings.

The company projects post-transaction long-term debt-to-EBITDA below its stated less-than-2.5x target; this remains a projection, not a reported post-close leverage figure.

Key Figures

Purchase price: $915 million Purchase price allocation: Approximately half Added annual ethanol capacity: Approximately 215 million gallons +5 more

Purchase price

$915 million

Acquisition of Harvestone Low Carbon Partners

Purchase price allocation

Approximately half

Attributed to expected 45Z and 45Q tax credit cash flows

Added annual ethanol capacity

Approximately 215 million gallons

Capacity added through the acquisition

Combined annual ethanol capacity

Approximately 730 million gallons

Upon closing

Revolving credit facility borrowings

Approximately $300 million

Expected transaction financing

Additional long-term debt

$615 million

Expected transaction financing

Pro forma long-term debt-to-EBITDA

Below 2.5x

Projected following the transaction; below the company's stated target of less than 2.5x

Expected closing

Fourth quarter of 2026 or early in the first quarter of 2027

Subject to required regulatory approvals and other customary closing conditions

Key Terms

carbon capture and sequestration, class vi co2 injection, revolving credit facility, debt-to-ebitda

4 terms

carbon capture and sequestration technical

"development and commercialization of vertically integrated carbon capture and sequestration (CCS) capabilities"

Carbon capture and sequestration is a process that captures carbon dioxide emissions from sources like power plants or industrial facilities and stores them underground to prevent them from entering the atmosphere. This technology helps reduce greenhouse gases that contribute to climate change, which can influence the long-term stability of energy and environmental markets. For investors, it represents a way to support cleaner energy solutions and potentially benefit from emerging industries focused on sustainable practices.

class vi co2 injection regulatory

"demonstrated Class VI CO2 injection capabilities"

A Class VI CO2 injection well is a regulatory category under the U.S. Environmental Protection Agency’s Underground Injection Control program for wells that inject carbon dioxide for long‑term geologic sequestration. It covers wells designed to place CO2, alone or mixed with other fluids, into deep underground rock formations that are separated from usable groundwater by confining layers; operators must meet specific requirements for site characterization, monitoring, testing, mechanical integrity, and post‑injection care to protect underground sources of drinking water.

revolving credit facility financial

"borrowings under The Andersons' existing revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

debt-to-ebitda financial

"pro forma long-term debt-to-EBITDA projected to remain below"

Debt-to-EBITDA is a leverage ratio that compares a company’s total debt to its operating cash-earning power, where EBITDA stands for earnings before interest, taxes, depreciation and amortization — a rough measure of cash generated by the business. Investors use it to judge how many years of current operating cash flow would be needed to pay off debt; a higher number signals greater financial strain and risk, like needing more paychecks to clear a mortgage.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Expands The Andersons' Renewables platform by more than 40%, adding approximately 215 million gallons of annual ethanol production

Adds a differentiated low-carbon ethanol platform strategically positioned to serve premium markets and complement The Andersons' existing network

Transaction expected to be immediately accretive to earnings per share and cash flows

MAUMEE, Ohio, Nov. 4, 2026 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) today announced that it has entered into a definitive agreement to acquire Harvestone Low Carbon Partners (HLCP), an industry leader in low-carbon ethanol that owns and operates three ethanol production facilities in North Dakota and Indiana from Energy Capital Partners (ECP), for $915 million. Approximately half of the purchase price is attributed to expected 45Z and 45Q tax credit cash flows, with the remainder to the underlying base ethanol operations and additional low-carbon opportunities. Upon closing, The Andersons' (the Company) combined ethanol production platform will have approximately 730 million gallons of annual capacity. The purchase price includes a normalized level of working capital. The transaction is subject to customary adjustments and closing conditions.

HLCP has a demonstrated track record of innovation in renewable fuels, including the development and commercialization of vertically integrated carbon capture and sequestration (CCS) capabilities. Its facilities are strategically positioned to serve low-carbon fuel markets, supported by established customer relationships. Its operating CCS infrastructure reduces the carbon intensity of ethanol production and enables the business to capture value through low-carbon fuel markets and applicable tax incentives, with additional benefits anticipated from projects under development.

"Our Renewables strategy is centered on expanding our low-carbon production platform through disciplined investments and capturing the growing value of renewable fuels," said Bill Krueger, President and Chief Executive Officer of The Andersons. "We have been evaluating ethanol plant acquisition opportunities for several years, and HLCP is exactly what we have been looking for. Its production economics, established low-carbon ethanol capabilities, and strategically advantaged locations complement our existing network and together represent a combination that is difficult to replicate. We believe this acquisition strengthens our Renewables business and creates a differentiated platform for profitable growth and attractive long-term returns for our shareholders. We look forward to welcoming the HLCP team to The Andersons."

"We believe The Andersons is the right home for HLCP," said Jeff Zueger, CEO of HLCP. "Our organizations share a strong commitment to our employees, our communities and the customers we serve, and we see a strong cultural fit between our teams. We're excited about what we can accomplish together."

Compelling Strategic Benefits

• Expands production scale and geographic reach: Adds three established ethanol production facilities in complementary agricultural regions, including two in North Dakota that extend The Andersons' presence in the Western Corn Belt and one in Indiana that complements the Company's Eastern Corn Belt operations. The facilities benefit from favorable corn procurement economics and established logistics infrastructure, with the North Dakota assets well positioned to serve low-carbon fuel markets.
• Adds differentiated, established low-carbon production capabilities: Brings operating CCS infrastructure and expertise, placing The Andersons among a very limited number of U.S. ethanol producers with demonstrated Class VI CO₂ injection capabilities. These operating assets represent a meaningful competitive advantage in an industry where much of the planned carbon sequestration capacity remains in development.
• Increases access to premium low-carbon fuel markets: Lower-carbon ethanol can command premium pricing, demonstrating HLCP's ability to commercialize its low-carbon production and capture value beyond conventional ethanol margins.
• Leverages The Andersons' integrated business model: The Company's grain origination, merchandising, and logistics capabilities complement HLCP's operations, creating synergistic opportunities to strengthen feedstock procurement, capture greater value from ethanol and co-products (DDGS and distillers corn oil), and enhance supply chain efficiency. Potential benefits include implementing best practices from both companies, the ability to maximize customer relationships across the combined fleet of plants, and implementation of the Company's Regenerative Ag programs.

Transaction Details

The transaction is expected to be financed through a combination of approximately $300 million in borrowings under The Andersons' existing revolving credit facility and $615 million in additional long-term debt. Committed financing was provided by U.S. Bank National Association and Farm Credit Mid-America, PCA.

The Company expects to maintain a strong balance sheet following the transaction, with pro forma long-term debt-to-EBITDA projected to remain below the Company's stated target of less than 2.5x. HLCP is expected to generate substantial cash flow with its industry-leading low-carbon ethanol production, along with generation of 45Z and 45Q tax credits. Anticipated immediate accretion from the transaction and cash flow generation from the combined business is expected to support financial flexibility and allow The Andersons' to maintain its established capital allocation priorities, including investments in growth and returns to shareholders.

The Company expects the transaction to close in the fourth quarter of 2026 or early in the first quarter of 2027, subject to required regulatory approvals and other customary closing conditions.

Advisors

Goldman Sachs & Co. LLC served as exclusive financial advisor and Polsinelli PC served as legal advisor to The Andersons, Inc. on the transaction.

Conference Call

The company will discuss this transaction at its quarterly earnings webcast on Wednesday, November 4, 2026, at 8:30 a.m. ET. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 9510864). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: https://app.webinar.net/ A7ab67dYrPw and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Company Description

The Andersons, Inc., is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.

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SOURCE The Andersons, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is The Andersons paying for Harvestone Low Carbon Partners?

The Andersons agreed to acquire Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. The purchase price includes a normalized level of working capital and is subject to customary adjustments. Approximately half is attributed to expected 45Z and 45Q tax credit cash flows.

When will The Andersons close the Harvestone acquisition?

The Andersons expects closing in the fourth quarter of 2026 or early in the first quarter of 2027. Completion is subject to required regulatory approvals and other customary closing conditions.