CapX Partners, an equipment finance specialist, provided a true lease structure of $15 million to Califia Farms to facilitate the procurement of new bottling and pasteurization lines, further expanding capacity.
Los Angeles-based Califia Farms was founded in 2010 by Greg Steltenpohl. The beverage company, which was named one of the most innovative consumers brands of 2016 by Forbes, is a nutmilk and refrigerated RTD coffee brand.
Califia Farms contacted CapX as the company looked to expand its distribution and bottling plant located in Bakersfield, CA.
“CapX enjoys working with strong leaders and growing companies. Califia Farms is a familiar household brand, recognized as a market leader across multiple categories,” said Richard Bollinger, managing director at CapX Partners. “The addition of these capital assets will help the company keep up with demand and continue their global expansion.”
Califia has recently pushed into other markets, including Canada, the UK and Australia, which caused a desire to diversity its capital sources.
“The demand for Califia Farms’ great-tasting, premium plant-based beverages has grown significantly year-over-year,” said Demir Vangelov, CFO at Califia Farms. “In order to meet the growing demand, we needed to build two new production lines, which required a significant investment and has resulted in tripling our output capacity at our Bakersfield plant. We appreciate CapX Partners’ willingness to work with growing companies like ours and their flexible financing options.”
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