Private equity firm acquires Midstate Mills assets

by Eric Schroeder
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DALLAS — Renovo Capital, L.L.C., through its Renwood Opportunities Fund, has acquired substantially all of the assets of Newton, N.C.-based Midstate Mills, Inc.

Midstate operates a 6,500-cwt flour mill in Newton. The facility also has 650,000 bus of grain storage.

Midstate’s roots date to 1935, when G.D. Drum acquired Maiden Flour Mill. He operated several mills before building a new facility in Newton in 1961. His son Boyd became president of the company in 1981. He died in December 2011 at the age of 77.

A second flour mill built by the company in 2000 in Wilson’s Mills, N.C., was acquired in 2007 by Bartlett Milling Co.

The company’s product line includes the traditional range produced by Southern mills, including family flour, corn meal, self-rising flour and other specialty biscuit and muffin mixes.

Midstate Mills was put up for auction earlier this year after what was attributed to the company’s “default in the payment of indebtedness.”

For its part, Renwood Opportunities Fund will provide capital to reduce debt, increase working capital and fund growth as it expands existing product lines and pursues new business partners.

Renwood Opportunities Fund is managed by Renovo Capital and Rosewood Private Investments. Renovo Capital is a private equity firm whose primary focus is on operating turnarounds, bankruptcy reorganizations, debt purchases and out-of-court restructurings for companies in manufacturing, distribution and business services. Rosewood Private Investments is the private equity arm of The Rosewood Corp., a family-owned company with diverse, worldwide operations and investments. Midstate Mills is not Renwood’s only food-based investment. The firm in October 2011 acquired the assets of A.G. Ferrari Foods, Inc., a specialty Italian food manufacturer. AGF operates nine retail locations in the San Francisco Bay Area offering a variety of specialty wines, cheeses, meats, pastas, spreads, sauces and desserts.
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READER COMMENTS (4)

By Beverly LaBerdia 6/16/2014 9:26:16 AM
I hope you will keep Midstate's flour products. I use the Formula L baking mix for waffles and you should try them to, the receipe is not on the package but should be. For each cup of mix 1 T sugar and a 1/32 t.(pinch)of baking soda add 1/2 c. of water +/- and stir, heat waffle griddle add butter to keep from sticking.

By betty deskins 11/14/2013 10:18:55 AM
This biscuit mix makes great fluffly, light biscuits. I found it in a FoodCity market in Pikeville and Louisa,Kentucky. Thanks for distributing this product into our area. I hope it will soon be found in our local stores in (Ashland, Kenticky.)

By marti b 11/10/2013 8:37:38 PM
Bought a bag while visiting my daughter in nc but waited til I got back to al to try. It's worth driving the 500 miles even if my daughter wasn't there, but hope I can find it here..no luck so far. Going back for the holidays so will get more Love this product Southern Biscuit Formula L!

By Bunny Harbin 11/7/2013 4:53:33 PM
Was so excited to learn that Southern Biscuit, Formula L Baking Flour, will be available to the general public in the future. I shop Walmart for this product. If it weren't available to me, my husband would never get another biscuit as I have been spoiled by the ease of using this mix. I first learned of the flour from a friend who said she couldn't make a biscut without it either. I think a good advertising campaign could make this product really sell. Woman are starting to bake again.