An investor acquires the largest independent American mill

Baltimore — Grain Craft, the largest independent mill company in the United States, announced June 21 that its parent company has entered into an agreement under which Redwood Capital Investments, LLC will acquire Grain Craft. Terms of the deal were not disclosed.

Headquartered in Baltimore, Redwood Capital Investments is a holding company that has invested in long-running family businesses across a range of industries. GreenCraft said GreenCraft would continue to operate as an independent company after the deal.

“We are very excited about the partnership with Redwood and look forward to continuing to grow our business together,” said Peter Frederick, President and CEO of Grain Craft. “Redwood is the ideal long-term home for the largest independent flour mill in the country. They have a clear understanding of the business, its principles and a long-term management strategy to create value for all stakeholders.”

Grain Craft is the third largest flour milling company in the country, and operates 13 flour mills in the United States. The company is headquartered in Chattanooga, Tennessee, and has a branch office in Overland Park, Kansas. In October 2021, the company opened a new laboratory facility at the Kansas Innovation Center in Manhattan. The Grain Craft Innovation and Quality Lab (GCIQ) features three lab spaces, each one dedicated to wheat, flour and bread.

Grain Craft was founded in May 2014 after the Milner Milling Co. and partner Pendleton Flour Mills acquired Cereal Food Processors, Inc., Mission Woods, Kan. , bringing together three of the most prominent independent milling companies in the United States. The company is currently owned by G&L Holdings, a family holding company. Decades before Grain Craft was founded, the Grizzard and Labbe families, along with Grain Craft Chairman Charlie Stout, worked to build Milner Milling and Pendleton Flour Mills into the premier flour milling companies. Cereal Foods was founded in 1972 by Fred Merrill and has grown to become one of the largest flour mill companies in the United States.

Grain Craft said the deal is expected to close in the third quarter of 2022, subject to usual closing terms and regulatory approval. BDT & Company served as financial advisor, Eversheds Sutherland (US) LLP served as legal advisor to G&L Holdings while Venable LLP served as legal advisor to Redwood.

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