Green Plains Sells Ethanol Plant to POET for $190 Million, Analysts Predict Modest Downside and 40.4% Upside

Green Plains Inc. is selling its Rives, Tennessee ethanol plant to POET for $190 million to bolster liquidity and reduce debt. Analysts recommend a "Hold" status with an average price target of $9.13, suggesting a potential downside of 8.29%. The company's one-year GF Value projection indicates a potential 40.4% upside to $13.97.

Green Plains Inc. has announced the sale of its Rives, Tennessee ethanol plant to POET LLC for $190 million in cash, inclusive of an estimated $20 million of working capital. The proceeds from this transaction will be used to retire nearly $128 million in junior mezzanine notes and bolster liquidity [1].

The sale is a significant move by Chris Osowski, who was appointed CEO last week, as part of the company's strategic review process. This review, which began in February 2024, considered various alternatives, including a potential sale of the plant. The board concluded that executing the current strategy under existing leadership was the best path to deliver shareholder value [2].

The transaction is expected to close during the third quarter of 2025, subject to customary closing conditions, regulatory approvals, and standard representations, warranties, and indemnification obligations [3]. The sale reflects Green Plains' commitment to unlocking value for shareholders and strengthening its balance sheet.

Green Plains is currently focusing on its carbon-capture pipeline and the expected boost in the nation’s ethanol-blending requirement starting next year. The ability to repay the debt owned by BlackRock funds marks a significant milestone in enhancing the company's financial flexibility and advancing its carbon reduction strategy [1].

Analysts recommend a "Hold" status for Green Plains with an average price target of $9.13, suggesting a potential downside of 8.29%. The company's one-year GF Value projection indicates a potential 40.4% upside to $13.97 [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-27/green-plains-sells-ethanol-plant-to-repay-debt-held-by-blackrock
[2] https://finance.yahoo.com/news/green-plains-enters-agreement-sell-201500829.html
[3] https://www.businesswire.com/news/home/20250827977444/en/Green-Plains-Enters-into-Agreement-to-Sell-Obion-Tennessee-Plant-to-POET