USA — G&L Holdings, a family holding company, has entered into a definitive agreement for its subsidiary Grain Craft to be acquired by Redwood Capital Investments, LLC.

Redwood Capital Investments is a permanent holding company with a demonstrated track record of investing in long-standing family-owned businesses across various industries.

“We are extremely excited to partner with Redwood and look forward to continuing to grow our business together,” said Peter T. Frederick, president and chief executive officer of Grain Craft.

“Redwood is the ideal long-term home for the largest independent flour miller in the country. They have a clear understanding of the business, its principles, and management’s long-term strategy to create value for all stakeholders.”

For decades before Grain Craft was established, the Grizzard and Labbe families, together with Grain Craft chairman, Charlie Stout, worked to build Milner Milling and Pendleton Flour Mills into leading flour milling companies.

In 2014, Milner Milling Co. and its partner Pendleton Flour Mills acquired Cereal Food Processors, Inc., consolidating three of the most prominent independent milling companies in the United States into Grain Craft.

Currently, Grain Craft is the America’s third largest flour milling company, operating 13 flour mills in the United States. In 2021, the company opened a new laboratory facility in the Kansas Wheat Innovation Center in Manhattan, Kansas, US.

The Grain Craft Innovation and Quality Lab (GCIQ) features three laboratory spaces with one each devoted to wheat, flour and baking.

Grain Craft said the transaction is expected to close in the third quarter of 2022, subject to customary closing conditions and regulatory approval.

BDT & Company served as financial adviser and Eversheds Sutherland (US) LLP served as legal adviser to G&L Holdings while Venable LLP served as legal adviser to Redwood.

Financial terms of the deal were not disclosed but Grain Craft revealed it will continue to operate as an independent business following the transaction.

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