The Andersons has agreed to acquire Harvestone Low Carbon Partners from Energy Capital Partners for US$915m, the Maumee, Ohio-based company said on 4 November 2026. The deal adds three ethanol plants with about 215m gallons of annual production.
Why The Andersons, Inc. is buying Harvestone Low Carbon Partners (HLCP)
The Andersons said the acquisition expands the scale and geographic reach of its renewables business into the western and eastern Corn Belt, adds low-carbon production with access to premium low-carbon fuel markets, and allows it to use its grain origination, merchandising and logistics capabilities for feedstock and co-products. HLCP's operating carbon capture and sequestration assets give it demonstrated Class VI CO2 injection capability.
“HLCP is exactly what we have been looking for.”
Deal terms and financing
The price includes a normalised level of working capital and is subject to customary adjustments. About half is attributed to expected 45Z and 45Q tax credit cash flows, with the rest attributed to the base ethanol operations and other low-carbon opportunities. The Andersons will fund the deal with about US$300m drawn under its existing revolving credit facility and US$615m of new long-term debt, with committed financing from U.S. Bank National Association and Farm Credit Mid-America. It expects the deal to be immediately accretive to earnings per share and to keep pro forma long-term debt to EBITDA below its 2.5x target.
Regulatory approvals and timing
Completion is subject to regulatory approvals and customary conditions, with closing expected in the fourth quarter of 2026 or early in the first quarter of 2027.
Market context
HLCP's plants include the Blue Flint and Dakota Spirit facilities in North Dakota and the Iroquois Bio-Energy plant in Indiana. The combined platform will have about 730m gallons a year of ethanol capacity.
