Epitome Energy partners with investment banking firm to complete financing for soybean crush plant
Feb. 15—GRAND FORKS — Epitome Energy, a company planning to build a soybean crush plant in Grand Forks, has partnered with Cappello Global LLC, a Beverly Hills, California-based international investment banking firm, to complete financing for the construction and operation of the plant. Epitome Energy CEO Dennis Egan announced the financial partnership in a press release on Tuesday, Feb. 14.
Epitome Energy
announced its plans to build a $400 million soybean crush plant
in Grand Forks in December. The plant is expected to break ground in 2023 and begin operations in 2025. Once completed, it will have the capacity to process up to 42 million bushels of soybeans per year into crude degummed oil, meal and hulls.
Cappello Global has a 50-year history of advising public and private companies on equity and debt financing, project financing, mergers and acquisitions, recapitalizations, restructuring and leveraged and management buyouts. In that time, it has completed more than $150 billion in transactions in over 60 countries. Capello Global will be Epitome Energy's exclusive investment banker to explore strategic and financial institutional funding alternatives, said the announcement.
"Cappello brings valuable expertise needed to help us deliver a soybean crush facility that will support farmers across the Red River Valley," said Egan in the press release. "I am excited to work closely with them to complete financing for this project."
"We are very optimistic about this particular opportunity and especially the long-term relationship with Dennis, Epitome Energy and for the opportunity to help strengthen the agricultural economy of the Midwest," said Alexander Cappello, chairman and CEO of Cappello Global.
Originally, the Epitome Energy
plant was planned for Crookston, Minnesota.
Egan cited a long wait for an air permit in Minnesota for the decision to build the plant in Grand Forks instead. He told the Herald in December that before obtaining an air permit, the company "found it
challenging for equity to move forward
with any project in Minnesota." The Minnesota Pollution Control Agency
expected to grant the project an air permit in February
of this year.
"We have received a lot of enthusiasm from the business and financial community already," said Egan in Tuesday's announcement. "With Cappello on board our goal is to have financial close in 2023."
When fully operational, the Epitome Energy facility is expected to create 50 to 60 permanent jobs and create $300 million annually in new economic activity, said the announcement. For local farmers, Epitome Energy estimates the plant will strengthen the basis for soybeans by 20 to 25 cents per bushel.
"We believe this is a great opportunity for North Dakota," said Gerard Cappello, managing director of Cappello Group. "Epitome Energy's facility will capitalize on the growing demand for soy products in a range of industries while improving access to processing for thousands of regional farmers."
