Burcon Leads Facility Acquisition to Boost Protein Production
Deal News | Feb 03, 2025 | Ag News
Burcon Nutrascience is set to start commercial-scale production of plant-based proteins from a newly acquired facility in Galesburg, Illinois. This move follows a partnership with RE ProMan LLC, led by Burcon's shareholder Johnny Vassallo, who orchestrated the acquisition of the plant, currently run by RIBUS and Innovative Proteins USA. This facility aims to enhance Burcon's market reach for proteins like pea, sunflower, and canola. The acquisition represents a significant step towards expanding North America's pea protein production capacity, with the company expecting profitability by 2026. Amidst these developments, Burcon contends with the challenges from cheap Chinese imports and navigates the competitive landscape of the protein ingredient market.
Sectors
- Food & Beverage
- Real Estate
- Agriculture
Geography
- United States – Location of the newly acquired facility in Galesburg, Illinois, and the North American presence in the protein market.
- Canada – Background context involves the Merit Functional Foods plant in Winnipeg and issues with Chinese imports affecting the Canadian market.
- China – Discussion of the impact of Chinese imports on the North American protein market.
Industry
- Food & Beverage – Focus on plant-based protein production and the competitive landscape in the protein ingredient market.
- Real Estate – Involvement of RE ProMan LLC in the acquisition of the production facility, indicating real estate's role in business expansion.
- Agriculture – The procurement of raw materials for protein production and sourcing from US growers ties into the agriculture sector.
Financials
- Undisclosed – Sum related to the acquisition of the Galesburg facility.
- $3 million – Projected investment into equipment for the new facility by RE ProMan.
- $1-3 million – Projected first-year sales from the facility's production.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Burcon Nutrascience | Target Company | Company | A company specializing in the extraction technology for multiple plant-based proteins looking to scale production. |
| RE ProMan LLC | Bidding Company | Company | Led by Johnny Vassallo, involved in acquiring the facility for Burcon's production expansion. |
| RIBUS | Co-packer | Company | Currently producing at the Galesburg site and will continue doing so under the new deal. |
| Innovative Proteins USA | Co-owner of Facility | Company | Partnered with RIBUS, previously involved in the Galesburg facility. |
| Johnny Vassallo | Board Member | Person | Burcon shareholder and board member instrumental in the facility acquisition deal. |
| PwC | Receiver | Company | Handling the receivership and sales process for Merit Functional Foods' plant. |
| Merit Functional Foods | Former Facility Owner | Company | Burcon investor that went bankrupt, previously owned a plant in Winnipeg. |