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.