US-based investment firm Strategic Value Partners (SVPGlobal) has completed the acquisition of White Energy’s food ingredient and ethanol business in Russell, Kansas, US.

Financial details of the deal have not been divulged.

The divestment consists of a wheat gluten manufacturing facility and an ethanol production factory.

SVPGlobal will now operate these two facilities as an independent enterprise.

White Energy has been operating the wheat gluten plant in Russell since 2006 and recently invested more than $15m in facility improvements that increased its capacity and improved packaging efficiency.

It has an annual production capacity of 56 million pounds.

“The Russell facilities have a unique value proposition in the food ingredient and renewable energy markets.”

The wheat gluten facility offers its products to high-growth food markets, including baked goods, pet foods, vegetarian and vegan foods.

White Energy’s food ingredient business will continue to market premier products under the Heartland brand name.

SVPGlobal founder and chief investment officer Victor Khosla said: “The Russell facilities have a unique value proposition in the food ingredient and renewable energy markets.

“We look forward to working with the employees at Russell to make this great business into an even better independent company.”

The ethanol facility in Russel has the capacity to produce more than 50 million gallons of ethanol per annum, which is supplied to premium clean-fuel markets.

White Energy CEO Greg Thompson said: “SVPGlobal is inheriting a talented team of highly capable professionals in Russell.

“With the resources and expertise that SVP brings to the table, these facilities will remain leaders in the food ingredient and renewable fuel markets.”

White Energy noted that it will continue to operate ethanol production facilities located in Hereford and Plainview, Texas. These facilities have an annual production capacity of 260 million gallons of biofuel a year.