Miller Magazine Issue: 152 August 2022

52 MILLER / AUGUST 2022 NEWS Grain Craft, the largest independent flour miller in the USA, announced 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 busines- ses 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 inde- pendent flour miller in the country. They have a clear unders- tanding 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, TN, a satellite office in Overland Park, KS, and the Grain Craft Innovation & Quality (GCIQ) Lab in Man- hattan, 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 Chair- man, Charlie Stout, spent several decades building leading flour milling businesses under the Milner Milling and Pendle- ton 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 condi- tions 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. Ceres Global Ag Corp. announced that it is suspending its previously-announced canola crush project at Northgate, Sas- katchewan. The Corporation’s decision to pause the project is due to a variety of factors, including but not limited to, inflatio- nary pressures resulting in higher costs than initially projected and shifting macroeconomic conditions. Consistent with the fo- regoing, Ceres has taken the step of terminating an equipment design and supply contract relating to the project, in order to reduce project-related contract liabilities. Termination of this contract and suspension of the project will result in a fourth quarter impairment charge in relation to certain earlier expenditures made in connection with the pro- ject and which will be included when Ceres’ reports its fourth quarter and fiscal year-end results later this fall. The corporation currently estimates that the impairment will be in the range of $25 million to $30 million. Ceres intends to continue to explore avenues to pursue a canola crush project of some form in the future, but there is no guarantee that such a project will come to fruition or would be similar to the previously announced project. Ceres is headquartered in Minneapolis, Minnesota, and to- gether with its affiliated companies, operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facili- ties have an aggregate grain and oilseed storage capacity of approximately 31 million bushels. Grain Craft to be acquired by Redwood Capital Ceres Global suspends crush project