The investment will support the expansion of LLF’s food business, allowing the company to meet increased demand for its food products and position it to maximize its profitability in both the food and ethanol markets.
The new investment funds new equipment to upgrade mill efficiency, provides additional working capital, and pays down debt.
“In addition to strengthening our financial health, the mill upgrade will be transformative for our business,” said Jay Lang, chief financial officer of LifeLine. “We received great support from our two equity holders, ICM and Agramarke Quality Grains.”
“ICM (a Colwich, Kansas, U.S.-based renewable fuels design and build firm) is committed to the innovative food and renewable fuel processes LifeLine has created and to growing its market presence,” said ICM President Dave VanderGriend.
“Since AgraMarke purchased the former Quaker Oats facility in 2001, LifeLine has added value for all area producers by strengthening local demand for corn and allowing our members to become vertically integrated in food and fuel production,” said John Howard, vice-chairman of AgraMarke Quality Grains and Hiawatha, Kansas, U.S., corn producer. Agramarke Quality Grains is a Missouri corn cooperative consisting of over 600 area producers.
Robin Venn, LifeLine Foods’ chief executive officer, said LifeLine has selected Buhler, Inc. to install a state-of-the-art corn mill.
“LifeLine’s unique approach to producing food and then upgrading the residual hominy stream to produce fuels and livestock feed is very compelling,” said Rene Steiner, president of Buhler Group North America.
In addition, LifeLine established a $20 million revolving credit facility with Wells Fargo Capital Finance NA, an industry leader in agricultural finance.