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Renewable Energy Group, an Ames, Iowa-based maker of biodiesel fuel, has acquired LS9, a maker of fuels and chemicals from sugarcane and cellulosic biomass. REG paid $40 million in cash and stock to acquire LS9 and may pay LS9 shareholders up to $21.5 million more if certain milestones are achieved in the next five years. LS9, which boasts Procter & Gamble among its clients, will continue to operate out of its South San Francisco, Calif., headquarters as REG Life Sciences. At the end of December, REG reached an agreement to buy ailing fuel technology firm Syntroleum, which owns 50% of Dynamic Fuels. The latter is a joint venture with Tyson Foods and makes biodiesel from animal fats.
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