Plano, TX-based White Energy, a food ingredient and ethanol business, has entered into an agreement to be purchased by Strategic Value Partners (SVPGlobal), a global investment firm. The acquisition includes the largest vital wheat manufacturing facility in the United States as well as one of the nation’s most cost-efficient ethanol production facilities, located in Russell, KS.
“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. We believe this business can be improved even further by focusing on Russell as a standalone operation,” stated Victor Khosla, Founder and Chief Investment Officer at SVPGlobal.
With an annual production of 56 million pounds, the vital wheat gluten facility in Russell is North America’s largest producer of the ingredient, according to SVPGlobal. The ingredient is a plant-based protein used in various food markets, which includes baked foods, pet foods, vegetarian and vegan foods.
The Russell ethanol facility, which has a production capacity of 55 million gallons annually, is 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. As a current investor, they know these facilities well and have the expertise and insight to continue moving this business forward,” explained Greg Thompson, Chief Executive Officer of White Energy.
The financial terms of the transaction have not been released.