Andersons To Acquire Harvestone
Andersons To Acquire Harvestone expands low-carbon ethanol capacity and ties about half the price to 45Z/45Q credits, prompting trader focus on accretion.
KEY TAKEAWAYS
- The Andersons agreed to buy Harvestone for $915 million, adding approximately 215 million gallons of annual ethanol capacity.
- Deal expands Renewables over 40% and was described as immediately accretive to earnings and cash flow.
- About half the purchase price was attributed to expected 45Z and 45Q tax-credit cash flows.
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On Nov. 3 and Nov. 4, 2026, The Andersons reported record third-quarter results and announced an agreement to acquire Harvestone, a deal the company said would expand its Renewables platform and be immediately accretive to earnings and cash flow.
Third-Quarter Results and Acquisition Details
The Andersons reported net income attributable to the company of $46 million, or $1.36 per diluted share, for the quarter ended Sept. 30, 2026. Adjusted net income was $47 million, or $1.38 per diluted share, and adjusted EBITDA, a proxy for operating profit, reached $101 million. Renewables generated a record pretax income of $63 million, while Agribusiness contributed $5 million on a reported basis and $9 million on an adjusted basis, driven by increased market volatility. Bill Krueger, president and chief executive officer, said, "Our third quarter results reflect significant year-over-year improvement in both Renewables and Agribusiness."
On Nov. 4, The Andersons announced a definitive agreement to acquire Harvestone Low Carbon Partners from Energy Capital Partners for $915 million, inclusive of working capital. Harvestone owns and operates three ethanol-production facilities in North Dakota and Indiana. The acquisition adds approximately 215 million gallons of annual ethanol production capacity, expanding The Andersons’ Renewables platform by more than 40% and adding low-carbon ethanol capabilities aimed at premium markets.
The company attributed about half of the purchase price to expected cash flows from the 45Z clean-fuel production tax credit and the 45Q carbon-capture tax credit, with the remainder tied to base ethanol operations and other low-carbon opportunities. The transaction is described as immediately accretive to earnings per share and cash flow. Energy Capital Partners separately announced the sale agreement.
