Stone Canyon Industries has sold SCI Ingredients and its wholly owned operating subsidiary, Fleischmann's Vinegar Company to Green Plains for $250m.
Fleishmann’s Vinegar is being regarded as one of the largest producer of food-grade industrial vinegar. Stone Canyon acquired SCI Ingredients in early 2015 and the company experienced substantial growth in revenues and profits.
Green Plains initially paid $135m for the transaction, which will be financed by debt and the balance amount will be paid by cash in hand.
The debt will be provided a group of lenders led by Maranon Capital, which offered $130m term loan and a $15m revolving line of credit.
Green Plains president and CEO Todd Becker said: “This strategic acquisition of Fleischmann’s Vinegar Company brings a new adjacent business that adds a consistent, growing earnings stream and expands our focus on the food and feed ingredients industry.
“Our long term strategy is centered around growing our company to take advantage of the rising global demand for energy and food products.
“The Fleischmann’s Vinegar portfolio of products is well positioned beyond food ingredients, ranging from antimicrobials, animal feeds, herbicides and disinfectants to name a few.”
Fleischmann’s Vinegar serves a range of markets and end-use applications including the food and beverage, agricultural, industrial and wholesale markets.
The company is situated in Cerritos, California and has a workforce of 112 employees and has operations across seven states including Alabama, California, Illinois, Maryland, Missouri, New York and Washington. Apart from this, it has four distribution warehouses in Oregon, California, Texas and Quebec, Canada.
Fleischmann's Vinegar president and CEO Ken Simril said: "We experienced a great partnership with Stone Canyon and are proud of everything our teams have accomplished together.
"We have positioned Fleischmann's to benefit from current food industry trends such as health and wellness which will support our long-term profitability as we move to the Green Plains platform."
