News

Green Plains Inc. GPRE has announced the completion of the acquisition of Green Plains Partners LP. Under the terms of the agreement, Green Plains acquired all of the publicly held common units of the Partnership that it and its affiliates did not own for 0.405 shares of Green Plains common stock along with $2.00 in cash, plus an amount of cash equal to unpaid distributions from the end of the last quarter to the closing date for each outstanding common unit representing a limited partner interest in the Partnership, as determined in accordance with the Merger Agreement, without interest.

The Partnership became an indirect fully owned subsidiary of Green Plains as a result of the merger. The Partnership's common units will no longer be listed on the Nasdaq and will be deregistered under the Securities Exchange Act of 1934.

The merger is expected to result in several advantages, including simplifying Green Plains’ corporate structure and governance, driving immediate earnings and cash flow benefits and lowering SG&A expenses tied to the Partnership. It will also help improve the combined enterprise's credit quality and align strategic interests between Green Plains shareholders and the Partnership’s unitholders by regaining full ownership and control over Green Plains’ total platform, including terminal operations.

Shares of Green Plains have lost 26% over the past year against a 17.3% rise of its industry.

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Zacks Rank & Key Picks

Green Plains currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include The Andersons Inc. ANDE, Cal-Maine Foods Inc. CALM and Steel Dynamics Inc. STLD.

Andersons currently carries a Zacks Rank #1 (Strong Buy). ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. The company’s shares have surged 54.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CalMaine Foods currently carries a Zacks Rank #1. CALM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 131.5%. The company’s shares have jumped 3.9% in the past year.

The Zacks Consensus Estimate for Steel Dynamics’ current-year earnings has been revised upward by 4.3% in the past 60 days. It currently carries a Zacks Rank #1. Steel Dynamics delivered a trailing four-quarter earnings surprise of roughly 6.5%, on average. STLD’s shares are up around 2.5% in a year.

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