March 18, 2016

Close on the heels of announcing its second investment in Hortau, Advantage Capital Agribusiness Partners (ACAP) announced it has made a follow-on investment in bulk herb and botanical product supplier, American Botanicals.

American Botanicals buys its products including roots, herbs, berries, and barks directly from U.S. farmers and dealers, which the company then sells and exports to be used in foods and nutritional supplements by more than 400 customers.

The company plans to use the undisclosed funds invested by ACAP to help finance the acquisition of Aloha Medicinals, a biotech company, and the largest producer of organic medical mushroom raw martials in the U.S. Aloha Medicinals’ products are currently being used in the production of nutraceutical and pharmaceutical products, specialty food products, supplements, and pet treats in markets across 60 countries. The company also produces certified organic mushroom spawn, which is used as seed stock to produce organic edible mushrooms.

“We are excited about welcoming Aloha Medicinals to the American Botanicals brand,” said Don Stock, CEO of American Botanicals. “The new products we are adding are in line with our mission of providing high-quality, American-produced natural ingredients and will allow us to continue our expansion.”

ACAP is $154.5 million fund licensed as a Rural Business Investment Company (RBIC) by the U.S. Department of Agriculture, and is a partnership between Advantage Capital Partners and nine Farm Credit organizations that is focused on rural American agribusinesses.

”We are pleased to support the continued growth of American Botanicals through the acquisition of Aloha,” said Tim Hassler, principal at Advantage Capital Parnters. “The two businesses are both growing organically and are highly complementary. We are excited about the prospects for continued growth.”