The American Infrastructure MLP Funds and various unnamed investors have recapitalized Agspring, a provider of grains, oil seeds, and related products. No financial terms were disclosed for the transaction that was led by company management.
(PRWEB) DECEMBER 17, 2015
Agspring announces that it has successfully completed a management-led recapitalization in partnership with the American Infrastructure MLP Funds (AIM) and major institutional investors. The recapitalization enables Agspring to continue expanding by offering mid-sized agricultural logistics or processing firms a new avenue for growth and long-term viability. Terms of the deal have not been disclosed.
Agspring was founded in 2012 in partnership with NGP Global Agribusiness Partners (NGP), an affiliate of NGP Energy Capital Management, with the goal of building the market leader in the agricultural midstream sector.
“With the support of NGP, Agspring has successfully integrated eight entities into a portfolio of operating companies over the past three years, establishing a strong foundation for continued growth,” said Randy Linville, CEO of Agspring. “The recapitalization in partnership with AIM provides us with long-term capital, allowing us to diversify into new trade flows and continue growing locally managed subsidiaries.”
The agricultural midstream sector, comprising the originating, handling, processing and logistics of grain, oilseeds, feed and specialty crops, remains undercapitalized, highly fragmented and in need of modernization. Agspring represents a new avenue for value creation for companies that want to grow and compete while remaining rooted in their local communities.
“We believe in an approach that is not only smart from an investor perspective but matches the desires and expectations of the farmer and local operator. We strive to upgrade the infrastructure for growth but maintain the reliable, proven local presence and people,” said President Brad Clark.
With the backing of new institutional investors led by AIM, Agspring is strongly positioned to grow into diverse new trade flows while further expanding the footprints of existing operating companies.
Agspring combines entrepreneurial teams, sustainable agriculture supply chains, and superior capital partners to feed our changing world. Agspring maintains decentralized operations and puts leadership teams in place who desire to grow into new markets including grains, oilseeds, specialty crops and consumer food ingredients. The recapitalization provides Agspring with a solid platform for capital improvement and expansion to execute on its vision.
About American Infrastructure MLP Funds
American Infrastructure MLP Funds (AIM) is a leading private investment firm bringing innovative investment capital to support the growth of infrastructure, real property and natural resource-related businesses. AIM’s strategy is designed to provide unique advantages for the owners, management teams and businesses in which it invests, while creating attractive returns and tax-advantaged current income for investors. For more information, visit http://www.aimlp.com.
About NGP Global Agribusiness Partners
NGP Global Agribusiness Partners, a premier equity sponsor in the agribusiness sector, is an affiliate of NGP Energy Capital Management, a leading investor in the natural resources business. Founded in 1988, NGP Energy Capital Management (“NGP”) is a premier investment franchise in the natural resources industry, with approximately $19.5 billion in cumulative equity commitments, organized to make investments in the natural resources sector. In addition to NGP GAP, NGP Energy Capital Management’s investment platform includes Natural Gas Partners and NGP Energy Technology Partners. For more information, visit http://www.ngpgap.com.