ADM Capital’s Cibus Fund leads successful financing for Enterra Feed Corporation
ADM Capital Europe LLP is pleased to announce that its Cibus Fund (“Cibus”) has led a successful financing round for Enterra Feed Corporation, a leading developer and manufacturer of sustainable insect-based feed ingredients for the aquaculture, pet food and poultry feed industries.
The financing led by ADM Capital complements the Cibus Fund’s primary focus on mid-market investment opportunities in sustainable food processing and production companies and will form part of its early stage investment mandate. The investment, which included funds from co-investors PHW Group and Mancal Group, will see Cibus take a large minority stake and a board seat as part of the transaction.
Since 2007, Enterra has pioneered sustainable production of nutrition-rich insects for animal feed in North America. Using pre-consumer food waste as feedstock, the company farms and harvests black soldier fly larvae, a beneficial insect that reproduces swiftly under controlled conditions which are processed into high value animal feed ingredients. The larvae production process is completely sustainable, diverting food waste that would normally go to landfills, composts or be incinerated.
Sales of Enterra products have tripled annually and continue to show high growth in pet food, poultry and aquaculture, as producers look for novel ingredients and sustainable replacements for resource-intensive feed ingredients like fishmeal, soybean meal, coconut oil and palm kernel oil.
With this new investment, Enterra Feed Corporation will be able to build on its recent period of high growth and is on track to complete construction of new facilities in Alberta (2019), British Columbia (2020) and the Midwestern U.S. (2021). Each plant will increase the company’s production capacity by 90 times.
The deal is the fifth made by ADM Capital’s Cibus Fund, which is targeting a final close before the end of this year.
Commenting Alastair Cooper, Head of Early Stage Investments at ADM Capital said: “We are very pleased to have successfully led this investment round in Enterra Feed Corporation – a company which has impressed us greatly as it makes enormous strides in sustainable food production. Converting waste food streams to high quality animal feed protein makes enormous sense for all. We see enormous growth ahead for Enterra. The capital will allow the business to scale up its operations with the investment completely aligned with our Cibus Fund, which is designed to invest in rapidly-growing food chain companies that employ smart, sustainable technologies to create high value. It is an ideal partnership, one we are excited to pursue and nurture. Like Cibus, Enterra is about the future of food.”
Geoff Gyles, CEO of Enterra Feed Corporation said: “We’re extremely pleased that three prestigious groups have chosen to strategically partner with us. ADM Capital has included us in their Cibus Fund, a global equity portfolio specializing in the future of food. The German-based PHW Group is a global leader in high-quality poultry specialties and Calgary-based Mancal Group concentrates on western Canadian high growth opportunities. We’re also excited their participation won’t be limited to investing; they will all be hands-on partners in developing our global expansion plans.”
About Enterra Feed Corporation
Enterra Feed Corporation is a privately held company that specializes in the development and
manufacture of sustainable insect-based feed ingredients for the aquaculture, pet food and poultry feed industries. Since opening its first commercial facility in 2014, Enterra has converted tens of thousands of metric tonnes of pre-consumer food waste into sustainable feed ingredients for its growing customer base.
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