Benson Hill Announces Divestiture of Its Fresh Business
Benson Hill (NYSE: BHIL) has announced the divestiture of its Fresh business in a two-part transaction totaling $21 million. The initial $18 million was received in 2022, with the remaining $3 million expected to close in Q2 2023. This move allows the company to concentrate on its Ingredients segment, meeting the increased demand for its proprietary soybean products. Management has reaffirmed its 2022 and 2025 financial guidance, projecting segment revenues between $370 million to $390 million and expects positive EBITDA and free cash flow by 2025.
- Divestiture of Fresh business enhances focus on Ingredients segment.
- Management maintains 2022 guidance for segment revenues of $370 million to $390 million.
- Proceeds will fund business operations and strategic initiatives.
- Positive EBITDA and free cash flow expected by 2025.
- Expected 50% non-cash write-off of the Fresh business book value upon closure of the second transaction.
- Divestiture enables the Company to enhance focus on its Ingredients business and meet growing demand for its proprietary soybean product portfolio.
- Management maintains 2022 guidance for the Ingredients Segment and consolidated adjusted EBITDA and free cash flow.
- Proceeds from the sale are expected to supplement the Company’s plans to fully fund the business.
- Management maintains its 2025 outlook for the Ingredients Segment in support of achieving positive EBITDA and positive free cash flow.
Benson Hill Announces Divestiture of Its Fresh Business (Photo: Business Wire)
Today’s announcement represents the execution of an expected milestone as
“We’re pleased to bring this process to a successful close,” said
On
Additional details about the divestiture may be found in the filings posted on the Company’s Investor Relations page.
“The acquisition of these assets and business is a perfect fit for our future growth plans,” said
Financial Outlook
In November, the Company reported third quarter financial results and increased its outlook for 2022. Following these transactions, management maintains its full-year 2022 outlook for the Ingredients Segment, and consolidated adjusted EBITDA and free cash flow:
-
Ingredient Segment revenues of
to$370 million (now consolidated revenues); and$390 million -
Consolidated gross profit of
to$11 million (representing an adjustment to account for an approximate$14 million contribution expected from the Fresh Segment).$3 million
The Company also maintains its 2025 outlook for the Ingredients Segment with revenues in excess of
About
About
Founded by Michel and
Use of Non-GAAP Financial Measures
In this press release, the Company includes references to non-GAAP performance measures. The Company uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results. The Company’s management believes these non-GAAP measures are useful in evaluating the Company’s operating performance and are similar measures reported by publicly listed
Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements include, among other things, statements regarding: the expected timing and anticipated benefits of the divestiture of the Fresh business, including the consummation of the stock purchase agreement pertaining to the Fresh assets remaining to be sold; expectations about actions intended to fully fund the business, inclusive of debt repayments, to achieve the Company’s strategic and financial objectives, including into 2025; expectations regarding the availability and use of proceeds of the consummated and pending divestitures of the Fresh business; the expected financial and accounting impacts of the divestiture of the Fresh business; the Company’s currently expected guidance regarding certain full year 2022 and projected 2025 financial results, including segment and consolidated revenues, consolidated gross profit, Adjusted EBITDA, and free cash flow; the expected timing of the Company’s release of its preliminary 2022 financial results and initial guidance for 2023; the Company’s strategy and plans for growth; the expected future performance of and demand for the Company’s products, technologies and integrated business model; statements regarding the Company’s ability to manage and develop its product pipeline; expectations about the markets in which the Company participates; and the Company’s competitive positioning, resources, capabilities, and expectations for future performance. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the risk that the Company will not realize the anticipated benefits of the divesture of the Fresh business; risks relating to the failure to satisfy the conditions to the consummation of the transactions contemplated by the stock purchase agreement, and that the transaction to sell the remaining assets of the Fresh business may not be completed in a timely manner or at all; the effect of the announcement of the divestiture of the Fresh business, including on the Company’s ability to maintain relationships with its customers, suppliers and strategic partners; risks relating to the availability and use of proceeds of the consummated and pending divestitures of the Fresh business, in light of contractual restrictions in the agreements governing the Fresh business divestiture and the Company’s debt facilities; risks relating to the Company’s expected accounting treatment regarding the Fresh business divestiture; the risk that the Company’s actions intended to fully fund the business, inclusive of debt repayments and the intended use of proceeds from the divestiture of the Fresh business, to achieve the Company’s 2025 strategic and financial objectives may be insufficient to achieve such objectives; risks associated with the Company’s ability to grow and achieve growth profitably; risks associated with changing industry conditions and consumer preferences; risks associated with the Company’s ability to generally execute on its business strategy; with the effects of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; risks associated with the Company’s transition to becoming a public company; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20230103005712/en/
Media Contact
636-359-0797
cdixon@bensonhill.com
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Investor Contact
314-714-6313
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