GREENWICH, Conn.--(BUSINESS WIRE)--Apr 1, 2019--Strategic Value Partners (“SVPGlobal”), a global investment firm with $8 billion of assets under management, and its affiliates today announced that it has officially closed on its purchase of White Energy’s food ingredient and ethanol business in Russell, KS. The sale includes two integrated plants — the largest vital wheat gluten manufacturing facility in North America and one of the nation’s most cost-efficient ethanol production facilities.
“The Russell facilities have a unique value proposition in the food ingredient and renewable energy markets,” said Victor Khosla, SVPGlobal’s founder and chief investment officer. “We look forward to working with the employees at Russell to make this great business into an even better independent company.”
SVPGlobal will now operate the following facilities as a standalone enterprise:
- Russell Gluten: With an annual production capacity of 56 million pounds, this is the nation’s largest producer of vital wheat gluten, a plant-based protein used as an ingredient in a number of attractive and high-growth food markets including baked goods, pet foods, and vegetarian and vegan foods. The new company will continue to market premier food ingredient products under the Heartland brand name, trusted by leading brands in the food and beverage industry.
- Russell Ethanol: This facility produces over 50 million gallons of ethanol per year — at some of the lowest unit costs in the industry and with the best carbon footprint of any facility of its kind in the United States. The low-carbon fuel is sent to premium clean fuel markets where the company receives attractive carbon credits. These achievements are made possible by the plant’s unique design, which enables it to consume starch by-products generated at the adjacent gluten facility.
“SVPGlobal is inheriting a talented team of highly capable professionals in Russell,” said White Energy CEO Greg Thompson. “With the resources and expertise that SVP brings to the table, these facilities will remain leaders in the food ingredient and renewable fuel markets.”
The Russell facilities employ approximately 80 people. Day-to-day operations will continue to be managed by the same highly-successful team to ensure no change to the quality of its products or customer service.
White Energy will continue to operate ethanol production facilities in Hereford and Plainview, TX, with the capacity to produce 260 million gallons of biofuel a year.
Financial details of the agreement are confidential.
SVPGlobal is a global investment firm with $8 billion in billion under management. The firm, established by Victor Khosla in 2001, has 114 employees, including 44 investment professionals, across its main offices in Greenwich (CT), London and Tokyo. Learn more at www.svpglobal.com.
About White Energy
White Energy, headquartered in Plano, Texas, is fueling America’s investment in renewable energy. It is one of the nation’s leading producers of biofuels and animal feed, with the capacity to produce approximately 250 million gallons of ethanol per year. The company is committed to reducing carbon emissions and currently working on several carbon capture initiatives. White Energy owns and operates two state-of-the-art grain processing facilities in Texas. Learn more at www.white-energy.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190401005421/en/
CONTACT: SVPGlobal Media Contacts
Alex Jones, James Madsen, Alex Campbell
+44 20 7952 2000
White Energy Media Contacts
KEYWORD: UNITED STATES NORTH AMERICA CONNECTICUT KANSAS TEXAS
INDUSTRY KEYWORD: ENERGY ALTERNATIVE ENERGY MANUFACTURING CHEMICALS/PLASTICS
SOURCE: White Energy and SVPGlobal
Copyright Business Wire 2019.
PUB: 04/01/2019 10:30 AM/DISC: 04/01/2019 10:30 AM
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