Alto Ingredients, Inc. Acquires CO2 Processing Plant Adjacent to Columbia Facility, Bolstering Economics and Increasing Asset Valuation

Core Insights - Alto Ingredients, Inc. has acquired Kodiak Carbonic, LLC for $7.25 million, enhancing its beverage-grade liquid CO2 processing capabilities and securing a long-term sales contract that will positively impact the company's bottom line [2][4] - The acquisition is expected to provide immediate financial benefits and future growth opportunities, with a focus on optimizing product value and expanding the premium ingredients portfolio [4] Company Overview - Alto Ingredients, Inc. is a prominent producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving key markets such as Health, Home & Beauty, Food & Beverage, Essential Ingredients, and Renewable Fuels [5] - The company’s customer base includes major food and beverage companies and consumer products firms, indicating a strong market presence [5] Operational Details - Alto Carbonic, located in Boardman, OR, utilizes CO2 from Alto Ingredients' Columbia plant to produce and sell liquid CO2, with a processing capacity exceeding 200 tons daily [3] - The facility has been operational since 2015 and serves various industries, including food and beverage processing and industrial cooling [3] Strategic Goals - The acquisition aligns with the company's strategy to enhance its CO2 operations, improve distribution efficiency, and expand profit margins [4] - By entering into a long-term off-take contract with a leading supplier, the company aims to de-risk future cash flows from the acquisition [4]