Alto Ingredients Acquires Kodiak Carbonic to Boost CO2 Operations

Deal News | Jan 06, 2025 | Globenewswire

Alto Ingredients Acquires Kodiak Carbonic to Boost CO2 Operations

In a strategic expansion move, Alto Ingredients, Inc., through its subsidiary Alto Carbonic, LLC, has acquired Kodiak Carbonic, LLC, a beverage-grade liquid CO2 processor, for $7.25 million plus working capital. The acquisition includes a beneficial long-term contract for the sale of CO2, which is expected to positively impact the company's bottom line and provide opportunities for expansion. The CO2 plant, adjacent to Alto's Columbia facility, processes and sells liquid CO2 across Northwestern USA for various applications. The acquisition aligns with Alto's strategy to boost its premium ingredients portfolio, improve cash flows, and strengthen asset valuation. The transaction reflects Alto's focus on optimizing product value and expanding into high-margin markets.

Sectors

  • Renewable Fuels
  • Specialty Chemicals
  • Food & Beverage Processing

Geography

  • United States – The transaction and operations are primarily based in the United States, with Alto Ingredients and the acquired facility both located within the U.S.
  • Oregon – The CO2 processing plant acquired by Alto Ingredients operates in Boardman, Oregon, marking it as a significant geographic focus in the transaction.

Industry

  • Renewable Fuels – Alto Ingredients operates within the renewable fuels sector, engaging in the production and distribution of renewable fuel sources.
  • Specialty Chemicals – The acquisition involves a specialty chemical product, beverage-grade CO2, highlighting the strategic importance of chemicals in food and beverage applications.
  • Food & Beverage Processing – The acquired CO2 processing plant supplies liquid CO2 used in food and beverage processing, a critical application area for the company.

Financials

  • $7.25 million – The acquisition price for Kodiak Carbonic, LLC, paid in cash by Alto Ingredients.

Participants

NameRoleTypeDescription
Alto Ingredients, Inc.Bidding CompanyCompanyAlto Ingredients is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients.
Kodiak Carbonic, LLCTarget CompanyCompanyKodiak Carbonic is a beverage-grade liquid CO2 processor acquired by Alto Ingredients.
Alto Carbonic, LLCAcquiring SubsidiaryCompanyA wholly-owned subsidiary of Alto Ingredients, responsible for the acquisition of Kodiak Carbonic.
Bryon McGregorCEO & PresidentPeoplePresident and CEO of Alto Ingredients, Inc., who commented on the strategic acquisition.