FOSTORIA, OHIO — The Mennel Milling Co. and Plaza Belmont Fund III on Aug. 26 announced they have acquired Renwood Mills, L.L.C. from Renovo Capital and Renwood Opportunities Fund I. Financial terms of the transaction were not disclosed.
Headquartered in Newton, N.C., Renwood Mills is an 80-year-old flour milling and mix company. The company was founded in 1935 by G.D. Drum, who acquired what was then known as the Maiden Flour Mill. Drum operated several mills before building a new facility in Newton in 1961. Known as Midstate Mills for many years, the company was put up for auction in 2013 after what was attributed to the company’s “default in the payment of indebtedness.”
Renwood Opportunities provided capital to reduce debt, increase working capital and fund growth as it expanded existing product lines and pursued new business partners.
Renamed Renwood Mills, the company now operates a 7,500-cwt flour mill and 12-ton corn mill that supply the company’s packing facility. Renwood Mills produces the Southern Biscuit and TendaBake brands of flour and mix, as well as a variety of private label retail products, food service and custom food service mixes, and wholesale bulk flour.
Mennel Milling is the seventh largest flour milling company in the United States with five flour mills located in Mount Olive, Ill.; Dowagiac, Mich.; Bucyrus and Fostoria, Ohio; and Roanoke, Va. The company produces a full range of hard, soft and spring wheat flours with total wheat flour capacity of 40,900 cwts. Additionally, Mennel Milling operates 10 country grain elevator locations handling wheat, corn, soybeans and popcorn, and two transportation companies. The company has total mill grain storage capacity of 7,333,000 bus.
Plaza Belmont Management Group, founded in 1998, is a private equity group that specializes in the acquisition and development of middle market food manufacturing and related businesses. The company is led by two former flour milling executives, John T. Stout Jr. and Robert J. Parnow, and an executive from the finance industry, John S. Dalton.
“Mennel and Plaza are excited to work with Tommy Lynn, c.e.o., and the rest of the management team of Renwood Mills to build on the strong foundation and fine tradition of producing the highest quality products and providing outstanding customer service,” Mennel said.Earlier this year Mennel reached a tentative agreement with General Mills to purchase a mix facility in Martel, Ohio. This purchase will broaden Mennel’s business into the bakery mix industry and is expected to close by Nov. 1.