Benson Hill Acquires ZFS Creston For $102 Mln - Quick Facts

Food tech company Benson Hill, Inc. (BHIL) announced Tuesday the acquisition of ZFS Creston, LLC, an established food grade white flake and soy flour manufacturing operation in southwest Iowa, for approximately $102 million primarily financed through a new debt facility.

The investment fulfills a final step in Benson Hill's ability to convert its proprietary soybeans into value-added soy protein ingredients for the underserved human and pet food categories.

Benson Hill said the acquisition of ZFS Creston, combined with its proprietary Ultra-High Protein soybean varieties, positions it to deliver a portfolio of improved ingredients as an innovative unlock to bottlenecks in the rapidly growing but capacity-constrained plant-based movement.

The exploding demand for soy-based protein ingredients is outpacing supply, suggesting the need to build additional concentrate and isolate processing facilities.

In connection with the transaction, Benson Hill secured a $100 million committed debt facility, with the potential to access an incremental $20 million.

The Company used $80 million of this new facility to finance the purchase price of the Creston acquisition with the remaining amount of the purchase price sourced from cash on hand and approximately $5 million of seller financing.

The Creston soy processing facility and food ingredients business is expected to contribute positive Adjusted EBITDA, and will increase Benson Hill's Ingredients segment revenue.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Hormel Foods Corp. (HRL) said, in the fourth quarter, the company delivered earnings per share comparable with record results last year, which included an additional week of sales. Pretax earnings were $357 million, up 1% from a year ago. Organic net sales were up 2%, excluding the impact of an additional... Over the Thanksgiving holiday weekend, from Thanksgiving Day to Cyber Monday, around 196.7 million Americans shopped in stores and online, higher than the previous year, according to the National Retail Federation or NRF. Black Friday continued to be the most favored day for in-store as well as online shopping during the five-day holiday period. Lenoir, North Carolina -based Exela Pharma Sciences, LLC has expanded its recall of Sodium Bicarbonate Injection due to vial breakage to include more lots, the U.S. Food and Drug Administration said. The product is used for treatment of metabolic acidosis and is packaged in a 50 mL glass vial, 20 vials per carton.
Follow RTT