Andersons Acquires Marathon JV Stake for $425 Million

Andersons Inc. acquired the remaining 49.9% stake in its joint venture with Marathon Petroleum Corp. for $425 million, doubling its investment in biofuels. The deal includes four ethanol plants and $40 million of working capital.

Andersons Inc. (Nasdaq: ANDE) has announced the acquisition of the remaining 49.9% stake in its joint venture with Marathon Petroleum Corp. (Marathon) for $425 million, effectively doubling its investment in the biofuels sector. The transaction, which includes four ethanol plants, was completed on July 31, 2025, and is expected to provide immediate earnings per share (EPS) accretion [2].

The acquisition is part of Andersons' strategy to grow its earnings through additional investment in ethanol production. The four ethanol plants, located in Albion, Michigan; Clymers, Indiana; Greenville, Ohio; and Denison, Iowa, have a combined annual production capacity of 500 million gallons [2]. Upon completion of the transaction, the plants were renamed The Andersons Renewables, LLC, and will be fully owned and operated by Andersons [2].

The deal includes $40 million of working capital, with the net purchase price of $385 million funded through cash on hand and existing credit facilities [2]. Andersons' Chief Executive Officer, Bill Krueger, stated that the acquisition aligns with the company's long-term strategy and will allow for greater operational efficiency and decision-making capabilities [2].

The acquisition comes on the heels of Andersons' strong second-quarter financial performance, with reported net income and adjusted net income attributable to the company of $8 million and $0.23 per diluted share, respectively [2]. The Renewables segment reported pretax income of $17 million and pretax income attributable to the company of $10 million, demonstrating the efficiency of the ethanol plants' operations [2].

Andersons has also been actively involved in other strategic initiatives, such as the construction of a Houston port project aimed at improving the efficiency and capacity of its grain operations and adding export capacity for U.S. soybean meal [2]. The company is optimistic about the potential support for renewable fuels from the EPA's proposed renewable volume obligations (RVOs) and expects the project to be completed by mid-2026 [2].

The acquisition of the full ownership interest in The Andersons Marathon Holdings LLC (TAMH) is expected to provide unrestricted access to the cash flows from the entity, offering greater flexibility for capital deployment across the entire enterprise [2]. Andersons remains committed to its disciplined capital deployment approach and continues to generate strong cash flows, funding a significant portion of its growth projects internally [2].

Andersons will host a webcast on Tuesday, August 5, 2025, at 8:30 a.m. ET, to discuss its performance and provide its outlook for the remainder of 2025 [2]. The webcast can be accessed via the company's website at www.andersonsinc.com.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-04/andersons-buys-remaining-marathon-jv-stake-for-425-million
[2] https://www.marketscreener.com/news/the-andersons-inc-reports-second-quarter-results-and-acquires-full-ownership-interest-in-the-ander-ce7c5edad080f723