As per the deal, Green Plains will acquire Hereford Renewable Energy, which operates the 110 million gallon per year corn-based ethanol plant in Hereford.
Green Plains will issue $78.5m for the ethanol production facility while the remaining for working capital, as part of the deal.
Murphy USA president and CEO Andrew Clyde said: "This transaction reinforces Murphy USA’s strategic intent of selling our non-core assets in a manner that captures the most value for our shareholders."
Subject to customary closing adjustments, the transaction is planned to be completed by the end of this month.
Green Plains president and CEO Todd Becker said: "The Hereford facility has many strategic and financial advantages over other destination plants because of its location, leading to both export and domestic market opportunities for ethanol and distillers grains.
"Because it is located near the largest concentration of cattle in the world, with over a million head of cattle fed within a 50-mile radius, the plant can produce a low carbon intensity fuel which is typically sold for a premium to ethanol produced at most other plants."
The facility comprises a shuttle unload facility that can unload 40,000 bushels of corn per hour. Additionally, the plant has 4.5 million gallons of ethanol storage capacity.
Green Plains recently signed a deal with Future Fuels to acquire Virginia’s sole ethanol plant in Hopewell for $18.25m. The plant, which has an annual capacity of 62 million gallons, had been idled.
The company expects the facility’s dry mill ethanol plant to increase its annual production capacity by approximately 60 million gallons to nearly 1.1 billion gallons per year.
