The Andersons, Marathon Merge Ethanol Interests to Form New Entity
The Andersons and Marathon Petroleum Corporation, which have had a working relationship since 2006, announced that they have merged certain ethanol assets to form a new company to be called The Andersons Marathon Holdings (TAMH). The facilities involved in the merger are those located in Albion, Michigan.; Clymers, Indiana.; and Greenville, Ohio - which were all previously jointly owned by The Andersons and Marathon Petroleum - and The Andersons' wholly-owned ethanol facility in Denison, Iowa.
Moving forward, The Andersons will own 50.1 percent, and Marathon will own 49.9 percent of TAMH. And under the terms of the agreement, The Andersons has entered into multiple long-term supply agreements with TAMH through which The Andersons will continue to operate the four plants, and buy corn, market ethanol and its co-products, and manage risk for TAMH. The merger is being seen as a prudent move that will create greater purchasing power, improve transparency for investors and lenders, and create a strong platform for future growth.