GREENWOOD, MISS. — Oxbow Crush LLC, a newly formed independent soybean processor, has acquired a soybean processing plant in Greenwood. The transaction was funded in part by a group of investors, including The Energy and Minerals Group, Yorktown Energy Partners XII, LP, Solaris Energy Capital and Thoroughbred Holdings, but financial terms were not disclosed.
Oxbow said the plant will be capable of processing more than 20 million bus of soybeans per year once it is operational in early 2023. The company plans to purchase and process soybeans and produce high-protein soybean meal and soybean hulls for animal feeds, and various grades of soybean oil for food, feed and renewable fuels, including soybean oil for the growing renewable diesel industry. As part of the acquisition, Oxbow also acquired an on-site biodiesel refinery but has no intention of operating the facility.
“We’re extremely excited about the investment, including the opportunity to service the tremendous soybean meal demand locally as well as the soybean oil demand regionally and in the Gulf Coast renewable fuels refining market,” said Charlie Wesley, managing partner at Thoroughbred Holdings. “We and our financial partners have decades of experience funding and building businesses, and strong conviction that Oxbow and this processing plant are well-positioned for success.”
Greg Piper has been named chief executive officer of Oxbow, and Rick Kim has been hired as chief operating officer.
Mr. Piper has more than 30 years of experience across the agricultural and energy industries, most recently as senior adviser at CEO Red Mountain Ventures LLC. Earlier, he was president and CEO of CP Energy, president and CEO of Gavilon Energy, senior vice president and chief commercial officer at Gavilon Group, LLC, senior adviser at Acon Investments, LLC, and senior vice president and CFO at Prisma Energy International.
Mr. Kim has more than 20 years of operational and engineering experience in processing and material handling, most recently as president of Peerless Resources Management, LLC. He also has worked for Morton Salt, Paringa Resources, Arch Coal, Inc., United Coal Co., Bucyrus International, and Massey Energy.
“The Oxbow team is excited to own and modernize this important facility that will support the agriculture economy in Mississippi,” Mr. Piper said. “Upgrades to the plant are ongoing, and we look forward to continuing to build our team and to restarting operations in early 2023.”
Oxbow said its initial focus is on upgrading the plant to meet industry standards for safety, reliability and efficiency. The upgrades also include an expansion to increase processing capacity and improvements to grain unloading and handling facilities.
“We’re proud to be bringing the facility back to life,” Mr. Kim said. “This business will be an integral part of the city of Greenwood and of the Delta’s agricultural community for decades to come.”The Greenwood plant was previously owned by Express Grain Terminals, which filed for bankruptcy in September 2001. Earlier this month a federal grand jury in Mississippi indicted John R. Coleman, former CEO of Express Grain Terminals, on federal and state criminal charges of defrauding farmers, banks and the Mississippi Department of Agriculture.