Northern Feed & Bean has been recapitalized with Fenix and Open Prairie.

The Challenge

- For over 65 years, Northern Feed and Bean has been serving bean growers, commodity dealers and feed lots in Northern Colorado with secure supply and exceptional service.
- As tenured specialists in the Pinto and Mayocoba bean markets, NFB has deep relationships with the regional grower base and strategically located facilities for storage and distribution.
- NFB retained Merit Investment Bank to perform a valuation to assist with succession planning and subsequently decided to pursue a sale of the business.


The Solution

- Merit Investment Bank identified a variety of strategic and financial buyers with interest in the business; however, many did not meet the needs of the seller.
- Merit Investment Bank leveraged our process to source an off-the-radar buyer that met the needs of the sellers and ensured continuity of the Company, its brands and dedicated staff going forward.
- Merit Investment Bank assisted in facilitating diligence, structuring the transaction, sourcing capital providers and ensured a transaction closing with a diverse group of stakeholders.
- Merit Investment Bank worked closely with the buyer to facilitate the sourcing of both debt and equity capital to fund the recapitalization.


The Results

- With the emergence of several deal complexities, including the death of a shareholder and a global pandemic, Merit Investment Bank maintained momentum and facilitated collaboration between buyer, seller and other stakeholders to ensure a successful closing.
- Merit Investment Bank’s focus on post-LOI facilitation of closing, a time when many investment banks take a step back, was critical to achieving an above-market result for our client.
- Our tenacity, creativity and resources allowed us to add significant value to the process and achieve an outcome unlikely without our involvement.