Alto Ingredients acquires Kodiak Carbonic, enhancing CO2 operations with a long-term sales contract and potential growth opportunities.
Quiver AI Summary
Alto Ingredients, Inc. announced the acquisition of Kodiak Carbonic, LLC for $7.25 million in cash, which includes an enhanced long-term sales contract for beverage-grade liquid carbon dioxide (CO2). This acquisition, finalized on January 1, 2025, is expected to positively impact the company's bottom line immediately and offers future financial benefits. Kodiak Carbonic, which processes CO2 from Alto's Columbia plant in Oregon, has been operational since 2015 and can produce over 200 tons of liquid CO2 daily for various industries. President and CEO Bryon McGregor emphasized that this move will optimize product value, enhance cash flow stability, and position the company for growth in its CO2 operations, ultimately boosting economic performance and asset valuation.
Potential Positives
- Secured an improved, long-term CO2 sales contract, enhancing immediate bottom-line accretion and future financial potential.
- Acquisition of Kodiak Carbonic allows for expansion of Alto Ingredients' premium ingredients portfolio in the beverage-grade CO2 market.
- The transaction strengthens asset valuation and improves sales growth and distribution efficiency for the Columbia facility.
Potential Negatives
- Despite securing a long-term CO2 sales contract and the acquisition of Kodiak Carbonic, the press release emphasizes significant uncertainties and risks associated with future performance, including economic conditions and operational efficiency, which could undermine the perceived benefits of the acquisition.
- The company highlights that actual results may differ materially from their current expectations, indicating a lack of guaranteed success in implementing their growth strategies post-acquisition.
- The mention of numerous factors that could adversely affect business performance, including fluctuations in demand and raw material costs, suggests potential vulnerabilities that may impact shareholders' confidence.
FAQ
What recent acquisition did Alto Ingredients announce?
Alto Ingredients announced its acquisition of Kodiak Carbonic, LLC, a beverage-grade liquid carbon dioxide processor, for $7.25 million.
How will the acquisition impact Alto Ingredients' bottom line?
The acquisition is expected to be immediately accretive to the bottom line and provide future financial upside.
What capacity does Kodiak Carbonic's facility have?
The Kodiak Carbonic facility can process over 200 tons of liquid CO2 daily for various applications.
What is the significance of the long-term CO2 sales contract?
The long-term contract enhances cash flow stability, de-risks the future revenue from the acquisition, and supports expansion opportunities.
Which markets does Alto Ingredients serve?
Alto Ingredients produces and distributes products for health, home & beauty, food & beverage, essential ingredients, and renewable fuels markets.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ALTO Insider Trading Activity
$ALTO insiders have traded $ALTO stock on the open market 4 times in the past 6 months. Of those trades, 4 have been purchases and 0 have been sales.
Here's a breakdown of recent trading of $ALTO stock by insiders over the last 6 months:
- GILBERT E NATHAN has traded it 2 times. They made 2 purchases, buying 30,000 shares and 0 sales.
- BRYON T MCGREGOR (President & CEO) purchased 37,000 shares.
- ROBERT R. OLANDER (Chief Financial Officer) purchased 7,350 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ALTO Hedge Fund Activity
We have seen 38 institutional investors add shares of $ALTO stock to their portfolio, and 27 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC removed 3,407,120 shares (-100.0%) from their portfolio in Q3 2024
- GOLDMAN SACHS GROUP INC added 1,289,502 shares (+504.6%) to their portfolio in Q3 2024
- CHARLES SCHWAB INVESTMENT MANAGEMENT INC removed 674,376 shares (-32.3%) from their portfolio in Q3 2024
- AMERIPRISE FINANCIAL INC removed 392,135 shares (-100.0%) from their portfolio in Q3 2024
- DIMENSIONAL FUND ADVISORS LP removed 328,971 shares (-17.6%) from their portfolio in Q3 2024
- MILLENNIUM MANAGEMENT LLC removed 216,504 shares (-43.3%) from their portfolio in Q3 2024
- BANK OF AMERICA CORP /DE/ removed 162,970 shares (-36.1%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
- Secures improved, long-term CO
2
sales contract,
creating immediate bottom-line accretion and future financial upside -
PEKIN, Ill., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, announced its wholly-owned subsidiary, Alto Carbonic, LLC, has acquired Kodiak Carbonic, LLC, a beverage-grade liquid carbon dioxide (CO
2
) processor, for $7.25 million in cash plus working capital on January 1, 2025. The transaction includes an improved, long-term contract for the sale of beverage-grade CO
2
, which will be immediately accretive to the bottom line, has a compelling payback timeline and provides potential expansion opportunities.
Alto Carbonic, co-located in Boardman, OR, utilizes CO
2
gas produced from Alto Ingredients' Columbia plant to produce and sell liquid CO
2
in the Northwestern region of the United States for applications in food and beverage processing, industrial cooling, and other industries. The facility, operational since 2015, has the capacity to process over 200 tons of liquid CO
2
daily.
"In our ongoing pursuit to optimize product value, we identified the beverage-grade liquid CO
2
plant as a significant opportunity and pursued the acquisition to continue to expand our premium ingredients portfolio," said Alto Ingredients' President and CEO Bryon McGregor. "By entering into an improved long-term off-take contract with a leading supplier of gases and related products and services, we further de-risk the future cash flows from this acquisition. Overall, we have augmented our CO
2
operations, positioning the Columbia facility to grow sales, improve distribution efficiency, and expand margins. The transaction boosts our economics and strengthens our asset valuation."
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company's customers include major food and beverage companies and consumer products companies. For more information, please visit
.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as "anticipate," "believe," "plan," "could," "should," "estimate," "expect," "forecast," "outlook," "guidance," "intend," "may," "might," "will," "possible," "potential," "predict," "project," or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning the benefits and other effects of Alto Ingredients' acquisition of Kodiak Carbonic, LLC and its liquid CO
2
production facility, including margin improvements and other benefits and effects; It is important to note that Alto Ingredients' plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients' current expectations depending upon a number of factors affecting Alto Ingredients' business and plans. These factors include, among others, Alto Ingredients' ability to profitably and efficiently operate its liquid CO
2
production facility; economic and market conditions, including for liquid CO
2
, specialty alcohols, renewable fuels and essential ingredients; export conditions and international demand for Alto Ingredients' products; fluctuations in the price of and demand for oil and gasoline; and raw material costs, including production input costs, such as corn and natural gas. These factors also include, among others, the inherent uncertainty associated with operating large-scale chemical production facilities, and financial and other projections and events, factors and risks previously and from time to time disclosed in Alto Ingredients' filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in Alto Ingredients' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2024.
Company IR Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755,
Investorrelations@altoingredients.com
IR Agency Contact:
Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777,
Investorrelations@altoingredients.com
