Merriam, Kan.-based Seaboard Corp. has bought a California ethanol production plant from Alto Ingredients Inc. in Sacramento.
The definitive agreement to acquire the plant is said to have cost $28.3 million.
Seaboard is a multinational agribusiness, fuel and transportation company. The sale will net Alto $19.5 million in cash and relieve it of $8.8 million in debt by the assumption of liabilities on the plant.
Pacific Ethanol Inc., the prior name of Alto, built the Madera ethanol refinery, which it opened in 2006.
It has an annual production capacity of 40 million gallons. Because of a glut of fuel ethanol, Alto idled its two plants in California more than a year ago.