HM Capital Buys The (Organic) Farm
HM Capital Partners has invested in Earthbound Farm, a San Juan Bautista, Calif.-based organic farm, peHUB has learned. Terms of the deal were not available but the company has secured $135 million in debt funding from RBC Capital Markets, a sum that totals around 1.9x to 2.9x leverage, according to reports published by two debt providers. The facility has a spread of 550 and 3% Libor floor. Dallas-based HM Capital joins the business’s existing partners, growers Mission Ranch and Tanimura & Antle, as well as founders Drew and Myra Goodman, as shareholders. The company’s President Charles Sweat will assume the role of CEO. The stake size was not disclosed, but HM Capital has historically made majority stake investments. HM Capital plans to help the company grow via add-on acquisitions of other organic food companies. “We see tremendous opportunities for Earthbound Farm to leverage its brand, organic acre base and farming expertise to introduce additional organic products, said Andrew Rosen, a partner with HM Capital.
