Benson Hill, Inc. (the “Company” or “Benson Hill”) a food tech company unlocking the natural genetic diversity of plants with its cutting-edge food innovation engine, today announced the expansion of its ingredients infrastructure by entering into a definitive agreement to purchase a soybean crushing facility from Seymour, Indiana-based Rose Acre Farms.
This investment represents a significant milestone in the execution of the Company’s growth plan, and will be funded through the expansion of Benson Hill’s debt facility with Western Technology Investment.
Benson Hill’s integrated supply chain strategy combines improved crop innovation through its CropOSŽ technology platform with traceable field to fork production. This acquisition will further solidify the Company’s position in the value chain to support production of a robust portfolio of proprietary, non-GMO, identity preserved and sustainable soy protein and oil ingredients for the human food and animal feed markets.
“The acquisition of the Rose Acre Farms soybean crushing facility represents an important next step in the execution of our playbook for growth,” said Bruce Bennett, President, Ingredients at Benson Hill. “This targeted investment can ultimately provide the production capacity to deliver on our integrated business model for commercialization and scaling of our innovative soybean products, including Ultra-High Protein soybean ingredients.”
Recent data projects that the value of the global plant protein market could surpass $162 billion by 2030. The facility will ultimately have the capacity to process Benson Hill’s proprietary soybean varieties to serve that market, including the first commercial plantings of its Ultra-High Protein soybeans, which will be harvested this fall. The Company recently announced it exceeded its target to double contracted soybean acres, delivering a 133 percent year-over-year increase for the 2021 growing season. The facility will also continue to serve existing customers.
“This milestone reflects continued momentum to advance our vision for a more modern, resilient and sustainable food system, starting with seed that is better from the beginning,” said Matt Crisp, Chief Executive Officer of Benson Hill. “Coupling production capacity like this with genomic innovation unlocks enormous value for both farmers and consumers beyond what has been possible through the traditional commodity system.”
“Rose Acre Farms remains committed to the local farming community, a value Benson Hill shares. We are excited to have found the right buyer for our soy processing assets in Benson Hill, a company with which we have a great history of partnership,” said Tony Wesner, Chief Operating Officer of Rose Acre Farms. “We look forward to continuing our partnership with Benson Hill and believe they will continue to be a valuable member of our community. We expect this transaction will result in value to our local farmers, particularly as opportunities for Benson Hill’s network of farmer partners continues to expand.”
The transaction is subject to customary closing conditions, and is expected to close by the end of September.