Grain Craft, the largest independent flour miller in the nation, announced on Thursday that its parent company has entered into a definitive agreement for Grain Craft to be acquired by Redwood Capital Investments, LLC. Transaction terms were not disclosed.
Based in Baltimore, Md., Redwood Capital Investments is a permanent holding company with a demonstrated track record of investing in long-standing family-owned businesses across various industries.
“We are extremely excited to partner with Redwood and look forward to continuing to grow our business together,” said Peter T. Frederick, president and CEO of Grain Craft. “Redwood is the ideal long-term home for the largest independent flour miller in the country. They have a clear understanding of the business, its principles, and management’s long-term strategy to create value for all stakeholders.”
As a leading flour miller, Grain Craft provides premium bulk and bagged flours through 13 milling locations across the United States. The company also has a corporate office in Chattanooga, a satellite office in Overland Park, Ks., and the Grain Craft Innovation & Quality (GCIQ) Lab in Manhattan, Ks. Following completion of the acquisition, Grain Craft will continue to operate as an independent business.
Grain Craft is currently owned by G&L Holdings, a family holding company. Prior to the formation of Grain Craft, the Grizzard and Labbe families, along with Grain Craft Chairman, Charlie Stout, spent several decades building leading flour milling businesses under the Milner Milling and Pendleton Flour Mills banners. G&L led the establishment of Grain Craft in 2014 with the acquisition of Cereal Food Processors and merger with Milner Milling and Pendleton Flour Mills.
The transaction, which is expected to close in the third quarter of 2022, is subject to customary closing conditions and regulatory approval. BDT & Company served as financial advisor and Eversheds Sutherland (US) LLP served as legal advisor to G&L Holdings. Venable LLP served as legal advisor to Redwood.