Partnership with Farm Credit and USDA Rural Business Investment Program Marks Second Investment in Bulk Herbs and Botanicals Industry Leader

ST. LOUIS–(BUSINESS WIRE)–Advantage Capital Agribusiness Partners, LP (ACAP) has announced a second investment in American Botanicals, LLC, a Missouri-based supplier of bulk herbs and botanical products, to help fund the acquisition of Aloha Medicinals, Inc., a biotechnology company focused on medicinal mushroom production.

American Botanicals buys, processes, sells and exports hundreds of roots, herbs, barks, berries and other botanical products, which are purchased directly from U.S. farmers and dealers and used in products ranging from food to nutritional supplements by the company’s more than 400 customers. Over 90 percent of these natural items are collected in the wild.

“We are excited about welcoming Aloha Medicinals to the American Botanicals brand,” said Don Stock, CEO of American Botanicals. “The new products we are adding are in line with our mission of providing high-quality, American-produced natural ingredients and will allow us to continue our expansion.”

Aloha Medicinals is the largest U.S. producer of organic medicinal mushroom raw materials. Its products are used in various pharmaceutical and nutraceutical products, as well as in specialty food products and pet treats and supplements. Thirty percent of the company’s sales are international, with distribution in over 60 countries. Aloha also produces certified organic mushroom spawn, which is the seed stock used for cultivating edible mushrooms.

”We are pleased to support the continued growth of American Botanicals through the acquisition of Aloha. The two businesses are both growing organically and are highly complementary,” said Tim Hassler, principal at Advantage Capital Partners. “We are excited about the prospects for continued growth.”

ACAP is a $154.5-million fund that is licensed by the U.S. Department of Agriculture (USDA) as a Rural Business Investment Company (RBIC). The fund is a partnership between Advantage Capital Partners and nine Farm Credit organizations, established to bring together resources and people focused on providing more private capital, small business investment and quality jobs to rural America. Farm Credit supports rural communities and agriculture with reliable, consistent access to credit and financial services.

This represents ACAP’s second investment announcement in 2016. Last week, ACAP announced a follow-on investment in Hortau.

About Advantage Capital Agribusiness Partners, LP (ACAP)

Advantage Capital Agribusiness Partners, LP (ACAP) is a $154.5-million fund that is licensed as a Rural Business Investment Company (RBIC) by the U.S. Department of Agriculture (USDA), which focuses on businesses involved in the production, processing and supply of agricultural products. It is a partnership between Advantage Capital Partners and nine Farm Credit organizations: AgCountry Farm Credit Services (Fargo, N.D.); AgStar Financial Services (Mankato, Minn.); AgriBank (St. Paul, Minn.); Capital Farm Credit (Bryan, Texas); CoBank (Denver, Colo.); Farm Credit Bank of Texas (Austin, Texas); Farm Credit Services of America (Omaha, Neb.); Farm Credit Services of Mid-America (Louisville, Ky.); and United FCS (Willmar, Minn.).

About Farm Credit

Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. Farm Credit has been fulfilling its mission of helping these areas grow and thrive for a century by providing farmers, ranchers and others in rural America with the capital they need to make their businesses successful and by financing vital infrastructure and communication services. Because a steady flow of capital means more jobs and economic growth, Farm Credit is able to invest in the vibrancy of communities throughout rural America. For more information about Farm Credit, visit www.farmcreditnetwork.com

Advantage Capital Partners is an investment adviser registered under the Investment Adviser Act of 1940. Registration does not imply a certain level of skill or training. This is not intended to be an advertisement concerning an offer to sell, or a solicitation of an offer to purchase any interest in Advantage Capital Agribusiness Partners or any other security. Advantage Capital Partners is also an equal opportunity provider.
Contacts

Advantage Capital Partners
Alyson G. Appleton, 314-732-4393
aappleton@advantagecap.com