Rentech To Sell Alternative Energy Tech, PDU To Sunshine Kaidi

(RTTNews) - Rentech, Inc (RTK), a company engaged in wood fibre processing and nitrogen fertilizer manufacturing businesses, Wednesday announced signing an agreement to sell its alternative energy technologies and decommissioned Product Demonstration Unit or PDU to Sunshine Kaidi New Energy Group Co., Ltd., a China-based investment company in the field of green energy,

"The sale of these technologies and the decommissioned PDU is the final step in exiting our alternative energy technology-related operations. We continue to focus on driving near-term and long-term growth in our wood fibre processing and fertilizer businesses," said D. Hunt Ramsbottom, President and CEO of Rentech.

The transaction involves an initial cash payment to Rentech of $15.3 million, with the possibility of a success payment of up to $16.2 million if Sunshine Kaidi successfully constructs and operates a demonstration-scale plant in China using the technologies and PDU equipment from Rentech.

Both the companies will get equal share in any proceeds from the future sale of the PDU site in Commerce City, CO, net of transaction fees and carrying costs of the property incurred by Rentech after the closing of the sale.

"The sale of these technologies and the decommissioned PDU is the final step in exiting our alternative energy technology-related operations. We continue to focus on driving near-term and long-term growth in our wood fibre processing and fertilizer businesses," said D. Hunt Ramsbottom, President and CEO of Rentech

Rentech expects costs associated with the energy technology business, including costs to secure the sale agreement and close the transaction, site-related carrying costs, and transitional costs, to be about $5 million in 2014. The costs will be recorded under selling, general and administrative expenses.

The sale of the technologies may close in mid-2014 and of the PDU site by the end of the first quarter of 2015.