USA – Global investment firm, Strategic Value Partners (SVP Global) has reached an agreement to acquire one of the largest vital wheat gluten manufacturing facility in the US from Plano, Texas-based White Energy.
The transaction which involves White Energy’s food ingredient and ethanol businesses also includes two integrated plants in Russell, Kansas, U.S., a World Grain report reveals.
According to SVP Global, who did not the sum of the deal, the vital wheat gluten facility in Russell has annual production capacity of 56 million pounds, making it North America’s largest producer of the ingredient.
The facility also has 750,000 bushels of wheat storage capacity.
“As a long-term investor in White Energy, we are intimately familiar with the Russell facilities, which have a unique competitive position in the food ingredient and renewable energy markets,” said Victor Khosla, founder and chief investment officer at SVPGlobal.
“We believe this business can be improved even further by focusing on Russell as a standalone operation.”
The Russell facility makes vital wheat gluten ingredients used in various food applications such as baked foods, pet foods, and vegetarian and vegan foods.
SVPGlobal said food ingredients produced at the Russell plant will continue to be sold under the Heartland brand name.
The ethanol plant on the other hand has a production capacity of 55 million gallons per year and utilizes the starch by-products generated at the adjacent gluten facility.
It is said to be rated as having the lowest carbon footprint of any facility of its kind in the United States by the California Air Resources Board.
“We are pleased to reach an agreement with SVPGlobal to purchase White Energy’s ethanol and gluten assets in Russell,” said Greg Thompson, chief executive officer of White Energy.
“As a current investor, they know these facilities well and have the expertise and insight to continue moving this business forward.”
The Russell facilities employ approximately 80 people, and the day-to-day operations will continue to be run by the same team to manage a seamless transition.
Established by Victor Khosla in 2001, SVPGlobal is a global investment firm with $8 billion in billion under management and employs 114 people.