Benson Hill has unveiled that it is taking steps to strengthen its financial position and accelerate the shift to an asset-light model focused on animal feed markets. According to the company’s statement, the expanded liquidity improvement plan includes planned divestitures of processing facilities to enable a new business model. As part of this plan, the company has transferred ownership of its Seymour, Ind., soybean crush facility to White River Soy Processing.
Benson Hill, Inc., a food tech company unlocking the natural genetic diversity of plants, announced plans to improve its financial position and accelerate its transition to an asset-light business model with a focused expansion into broadacre animal feed markets, complementing its accomplishments in human food ingredients. According to the company, the near-term opportunity in animal nutrition is consistent with Benson Hill’s strategy to expand and diversify its proprietary product portfolio, improve nutrition security, and foster collaboration with industry partners within the food value chain.
In connection with this announcement, the Board of Directors has appointed Deanie Elsner, who had served as Interim CEO since June, to the position of Chief Executive Officer, effective immediately.
“In her first few months as Interim CEO of Benson Hill, Deanie has demonstrated a keen understanding of the market complexities and has uncovered ways to leverage the strength of CropOS and the company’s unparalleled innovation pipeline,” said Dan Jacobi, Chairman of the Benson Hill Board of Directors. “We appreciate her willingness and enthusiasm to lead the company on this journey, and the Board has every confidence that Deanie is the right person to take Benson Hill into its next phase of growth and keep the company on solid financial footing.”
Elsner, CEO of Benson Hill, commented: “Benson Hill has the agility to persevere. Based on our ongoing strategic review, we believe that strengthening of our financial foundation, moving to an asset-light business model, and introducing our innovations into attractive broader end markets, is the most feasible path forward for Benson Hill. Through the actions we have taken and are continuing to implement, we are poised to deliver significant value as a leader in AI-driven proprietary seed innovation.”
Elsner continued, “We are already making progress on our strategic path. With the expected divestiture of our processing facilities, we plan to retire high-cost debt and extend our liquidity by more than 12 months. In addition, we are engaged in discussions with potential partners to scale our current proprietary portfolio and product pipeline for large-acre U.S. animal feed and pet food markets. I am excited about the opportunities to leverage the core strengths of the business for long-term value creation.”
SEYMOUR SOYBEAN CRUSH FACILITY WAS TRANSFERRED TO WHITE RIVER SOY PROCESSING
As one of the first stages of the new plan, Benson Hill has transferred ownership of its Seymour, Ind., soybean crush facility to White River Soy Processing, LLC for approximately $36 million of total gross proceeds, subject to working capital and other adjustments.
The agreement represents the completion of an expected milestone as Benson Hill implements cost and operational improvements as part of its Liquidity Improvement Plan. The Company intends to use the proceeds to improve its liquidity position, pay down debt, and reduce operating and working capital costs while maintaining relationships with farmer partners in Indiana. Benson Hill has owned and operated the facility since 2021.
“The sale of the Seymour crush assets sharpens our focus on future growth and further enables disciplined capital allocation as part of our three-part Liquidity Improvement Plan,” said Deanie Elsner. “Under our ownership, the Seymour team has achieved record-breaking safety and production records, and we are extremely grateful for their efforts. We look forward to working with White River to seamlessly meet the needs of our farmers, customers, and team members.”
Approximately 30 team members will become employees of White River, ensuring a smooth transition for customers. Benson Hill will honor 2023 and 2024 contracts with its farmer partners who deliver grain to Seymour. The parties also expect to finalize a grain supply and licensing agreement to continue processing Benson Hill’s proprietary soybeans through the facility.
ANIMAL FEED OPPORTUNITY
The Company recently completed an external analysis of several non-GMO, Ultra-High Protein low oligosaccharide (UHP-LO) commercial soybean varieties validating novel value-added attributes for poultry diets, swine rations, and pet food.
These breakthrough soybean varieties were developed from Benson Hill’s proprietary germplasm and CropOS® innovation engine – an AI-based prediction and data insights platform.
Benson Hill expects to expand its UHP-LO soybean portfolio with herbicide-tolerant and second-generation seed varieties in the next two to three years, helping to extend its competitive advantage and diversify its market reach for different geographies and end markets, including large U.S. feed markets representing a total addressable market of approximately 28 million acres.
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