Agricultural company The Andersons Inc. and Marathon Petroleum Corp. merged four ethanol facilities into a new holding company called The Andersons Marathon Holdings LLC, or TAMH, according to an Oct. 2 release.
The merger combined three ethanol facilities jointly owned by The Andersons and Marathon Petroleum — located in Albion, Mich.; Clymers, Ind.; and Greenville, Ohio — as well as The Andersons' ethanol facility in Denison, Iowa. The Andersons will hold a 50.1% interest in TAMH while the remaining 49.9% will be held by Marathon Petroleum effective Oct. 1.
Alongside the merger agreement, TAMH entered into several long-term services agreements with The Andersons in which the latter will continue to operate the four facilities, buy corn, market ethanol and other coproducts as well as manage risk for the holding company.
Debt previously held by the separate entities was refinanced through a new $200 million TAMH credit facility.
