PEKIN, Ill. - Alto Ingredients, Inc. (NASDAQ: ALTO), a prominent producer and distributor of specialty alcohols and renewable fuels, has announced the acquisition of Kodiak Carbonic, LLC, a processor of beverage-grade liquid carbon dioxide (CO2). The deal, which was finalized for $7.25 million in cash plus working capital on January 1, 2025, includes a beneficial long-term CO2 sales contract expected to immediately enhance Alto Ingredients’ earnings. The acquisition appears strategically timed, as InvestingPro data shows the company’s stock has gained over 14% in the past week, with analysts setting price targets ranging from $3.50 to $5.50, significantly above its current $1.75 trading price.
Alto Carbonic, a subsidiary of Alto Ingredients, is situated in Boardman, OR, and has been operational since 2015 with a daily processing capacity of over 200 tons of liquid CO2. This acquisition aims to expand the company’s premium ingredients portfolio and optimize product value. The CO2 produced is utilized in various industries, including food and beverage processing and industrial cooling. According to InvestingPro analysis, Alto Ingredients maintains a strong liquidity position with a current ratio of 3.22, suggesting ample resources to support its expansion strategy. For detailed insights into Alto’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Bryon McGregor, President and CEO of Alto Ingredients, expressed that the acquisition and subsequent improved contract with a leading gas supplier bolster the company’s CO2 operations. McGregor stated, "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."
The transaction is anticipated to grow sales, enhance distribution efficiency, and expand margins for Alto Ingredients, thus strengthening the company’s asset valuation. Alto Ingredients serves a diverse customer base, including major food and beverage companies and consumer products companies.
The company cautioned that forward-looking statements reflect current expectations and are not guarantees of future performance. Various factors, including market conditions and input costs, could influence the actual results of the company’s operations.
This news is based on a press release statement from Alto Ingredients, Inc.
In other recent news, Alto Ingredients Inc. released its financial results for the third quarter of 2024. The earnings call, led by President and CEO Bryon McGregor and CFO Rob Olander, provided insights into the company’s performance. The company’s leadership emphasized that the discussed information is time-sensitive and future results may vary due to potential risks and uncertainties.
To ensure transparency, Alto Ingredients made a detailed presentation and press release available on their website following the market’s close. While no specific financial misses were discussed during the call, the company did caution that actual results may differ materially from those projected due to inherent risks and uncertainties.
These are just some of the recent developments for Alto Ingredients. It’s important for investors to review the materials provided by the company for a better understanding of their current financial standing.
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