LEAWOOD, KANSAS, U.S. — Agspring announced on Dec. 17 that it has successfully completed a management-led recapitalization in partnership with the American Infrastructure MLP Funds (AIM) and major institutional investors. The recapitalization enables Agspring to continue expanding by offering mid-sized agricultural logistics or processing firms a new avenue for growth and long-term viability, the company said. Terms of the deal have not been disclosed.
Agspring was founded in 2012 in partnership with NGP Global Agribusiness Partners (NGP), an affiliate of NGP Energy Capital Management, with the goal of building the market leader in the agricultural midstream sector.
“With the support of NGP, Agspring has successfully integrated eight entities into a portfolio of operating companies over the past three years, establishing a strong foundation for continued growth,” said Randy Linville, chief executive officer of Agspring. “The recapitalization in partnership with AIM provides us with long-term capital, allowing us to diversify into new trade flows and continue growing locally managed subsidiaries.”
The agricultural midstream sector, comprising the originating, handling, processing and logistics of grain, oilseeds, feed and specialty crops, remains undercapitalized, highly fragmented and in need of modernization. Agspring represents a new avenue for value creation for companies that want to grow and compete while remaining rooted in their local communities, the company said.
“We believe in an approach that is not only smart from an investor perspective but matches the desires and expectations of the farmer and local operator,” said Brad Clark, president of Agspring. “We strive to upgrade the infrastructure for growth but maintain the reliable, proven local presence and people.”
With the backing of new institutional investors led by AIM, Agspring is strongly positioned to grow into diverse new trade flows while further expanding the footprints of existing operating companies, the company said.