OMAHA, NEB. — Green Plains Inc. has acquired SCI Ingredients Holdings, Inc. (SCI) and its wholly-owned operating subsidiary Fleischmann’s Vinegar Company, Inc., from Stone Canyon Industries, L.L.C. for $250 million.
Fleischmann’s Vinegar, a specialty ingredients company, is the world’s largest manufacturer and marketer of food-grade industrial vinegar. The company is based in Cerritos, Calif., and operates seven manufacturing facilities in Alabama, California, Illinois, Maryland, Missouri, New York and Washington.
|Todd Becker, president and c.e.o. of Green Plains|
“This strategic acquisition of Fleischmann’s Vinegar Co. brings a new adjacent business that adds a consistent, growing earnings stream and expands our focus on the food and feed ingredients industry,” said Todd Becker, president and chief executive officer of Green Plains. “Our long-term strategy is centered on growing our company to take advantage of the rising global demand for energy and food products. As we approach scale as one of the largest ethanol producers in the world, we have the engine of a significant commodity-processing entity that can generate substantial cash flow, allowing us to enhance the food and feed ingredients side of our business. The Fleischmann’s Vinegar acquisition will lead to further supply chain opportunities within Green Plains, as its largest production cost is food-grade ethanol. We will use our commodity and risk management expertise to expand our opportunities into consumer and industrial-based ethanol products.”
Ken Simril, president and c.e.o. of Fleischmann’s Vinegar Co., will lead Green Plains’ overall global food ingredients growth strategy. The current management team will continue operating Fleischmann’s as a standalone business.
Stone Canyon acquired SCI Ingredients in January 2015.
Mr. Simril said the company looks forward to transitioning to new ownership.
|Ken Simril, president and c.e.o. of Fleischmann’s|