Fiberstar closes on $10.64 million strategic growth transaction
Wisconsin-based manufacturer completed a $10.64 million debt transaction
RIVER FALLS, Wis., July 17, 2013 /PRNewswire/ — Fiberstar, Inc. (Fiberstar) announced today that it has completed a $10.64 million debt transaction with Associated Bank, N.A. (Associated Bank) and Spell Capital Mezzanine Partners SBIC, LP (Spell Capital Mezzanine). Proceeds from the capital that were raised will be used to quadruple Fiberstar’s production capacity, support the market introduction of its new gelling ingredient, Citri-Gel(TM) and as working capital to support Fiberstar’s growth.
Wipfli Corporate Finance Advisors LLC (WCF) advised Fiberstar on the structure and placement of the financing package and secured the funding sources necessary to complete the debt transaction on extremely favorable terms and set the stage for Fiberstar’s future growth.
Fiberstar, headquartered in River Falls, Wisconsin, is a global leader in the manufacture and marketing of innovative bio-ingredients from plant cell wall materials. The company serves food, pet food and cosmetics customers in 50 countries around the globe. Export sales currently account for 85% of Fiberstar’s revenues and have been growing at an average compound annual growth rate of 47% for the past three years.
In 2011, Fiberstar earned the honor of being named one of “America’s fastest growing small businesses” by Inc. Magazine, ranking it 39th in the manufacturing category.
Fiberstar’s award-winning Citri-Fi® ingredient is used by global food manufacturers to improve the quality, labeling and cost of the products into which it is incorporated.
Dale Lindquist, President & CEO of Fiberstar, Inc. said, “This financing was secured because of strong third party validation of Fiberstar’s technologies, products, business model, strategic plan, customer validation and satisfaction, leadership model and financial performance, which are a direct result of the acumen of Fiberstar’s talented innovation, production, marketing, sales, distribution and customer support teams”.
Fiberstar expects its ingredients sales to surge beginning in 2014 when Citri-Fi will no longer be under allocation. Fiberstar’s growth is supported by a strong global distributor network consisting of 50 independent ingredient distributors.
Fiberstar’s ingredients are used by global manufacturers to improve the quality, nutrition, labeling and cost of the food and cosmetic products into which they are incorporated.
Fiberstar, Inc. is a privately held company located in River Falls, WI, that holds an exclusive worldwide license for platform technologies which it uses to enhance the functionality of plant cell wall materials, a low-cost byproduct generated by fruit, vegetable and cereal grain processors, from which it produces all-natural, bio-based, multi-functional ingredients for global food and cosmetic manufacturers. Fiberstar’s brands include Citri-Fi®, Citri-Gel(TM), Imulsi-Fi(TM), and Hydro-Fi(TM). For more information, visit www.fiberstar.net.
Forward-Looking Statements and Risk Factors
Certain statements in this press release such as the demand for Fiberstar products and expected increases in Fiberstar’s revenue growth are “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. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Fiberstar, Inc. to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
SOURCE Fiberstar, Inc.