http://sev.prnewswire.com/biotechnology/20060912/SFTU09512092006-1.html
Cilion Successfully Completes its Second Round of Capital Raising, and One of the Largest in the Fast Growing Bio-fuels Sector
GOSHEN, Calif., Sept. 12 /PRNewswire/ -- Cilion, a California-based company with plans to build multiple ethanol plants, today announced one of the industry's largest capital raises totaling over $200 million. In June, the company announced the formation of Cilion with a partnership between Western Milling, one of California's largest grain milling companies, and Khosla Ventures, a venture assistance and venture capital firm. Cilion will operate modular, standardized 55 million gallons per year ethanol plants using India-based Praj technology. Using a variety of innovations, these plants will be greener and less expensive than standard corn-to-ethanol plants, therefore substantially reducing the consumption of traditional energy sources in ethanol production.
Joining the partnership with Western Milling and Khosla Ventures for this round of equity are some notable investors including the Virgin Group through the newly formed Virgin Fuels, the Yucaipa Companies and Advanced Equities, Inc. Sir Richard Branson recently launched Virgin Fuels, as part the Virgin Group and brand, and plans to invest up to $400 million in renewable energy initiatives over the next three years. Yucaipa is a premier private equity investment firm that has established a record of fostering economic value through the growth and responsible development of companies. Advanced Equities specializes as a venture capital investment bank, headquartered in Chicago, with institutional and retail sales nationwide.
Kevin Kruse, CEO of Cilion, Inc. noted, "This is really a landmark event. Cilion has a business plan focused on low cost production using multiple feedstocks and energy saving technology. The company's strategy is focused on building and operating destination ethanol plants which are closer to consumers. Together with our existing and new equity partners, Cilion will be a significant contributor to reducing our nation's reliance on fossil fuels."
Commenting on the deal, Sir Richard Branson said, "This is a very exciting investment for Virgin and the new company will make a substantial contribution to meeting Governor Schwarzenegger's goal as stated in his recent Executive Order, calling for California to produce a minimum of 20% of its own bio-fuels by 2010. We have excellent founding partners in Cilion. The industry experience of Western Milling and Khosla Ventures' track record of building successful companies will complement Virgin's global expertise in backing entrepreneurs to build successful companies that make a difference."
Vinod Khosla, of the nation's most influential ethanol advocates, said, "The combination of Cilion's management experience in grain handling and the destination plant model near cattle feedlots eliminating the need for fossil energy use for drying distillers grain will make Cilion not only a low cost producer but also a very environmentally friendly ethanol producer. I am excited to partner with this high quality group of investors as we move forward."
Western Milling:
Western Milling, one of California's largest grain milling companies, has a long manufacturing history dating back to 1935. Western Milling continues to operate under the foundation and beliefs on which the company was built and firmly stands by the philosophy: "Know and respect thy customer and strive for his success." -- Otto Kruse, 1935. Western Milling brings tremendous experience in grain procurement, operating efficiencies of the grain milling industry and a sales force with key relationships within the livestock industry. This sales force (including 5 PhD's) is experienced in marketing wet distillers grain resulting in the Cilion ethanol plants consuming 33% less natural gas than typical ethanol standards. In addition, in 2004 Western Milling built and operated the only large scale ethanol plant located west of the Rocky Mountains in Goshen, CA. The management team of Western Milling along with Cilion bring key operating experience in livestock nutrition, grain procurement, marketing, and finance.
Khosla Ventures:
Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in both traditional venture areas like the Internet, computing, mobile, and silicon technology arenas but also supports breakthrough scientific work in clean technology areas such as bio-refineries for energy and bioplastics, solar, battery and other environmentally friendly technologies. Vinod Khosla, formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems, founded the firm in 2004. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one the nation's most influential ethanol advocates, noting "there are venture capitalists, and then there's Vinod Khosla." Khosla Ventures is based in Menlo, California.
Virgin Group:
Virgin, a leading branded venture capital organization, is one of the world's most recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephone, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. Virgin has created more than 200 companies worldwide, employing approximately 35,000 people in 29 countries. Revenues around the world in 2005 exceeded 5 billion pounds Sterling (US$10 billion).
Virgin Fuels:
Virgin Fuels is the investment vehicle for a series of international renewable energy investments by Virgin Group with an early focus on bio-fuels (rather than other alternative energy sources or industrial power generation). The scope of the investment strategy will also include research and development of new bio-fuels suitable for both ground transportation and aviation.
Virgin Fuels has an initial funding commitment from the Group of up to $400 million. Early investments are expected to be in the United States, closely followed by the UK, mainland Europe and the rest of the world.
The Yucaipa Companies:
The Yucaipa Companies is a premier private equity investment firm that has established a record of fostering economic value through the growth and responsible development of companies. As an investor, Yucaipa works with management to strategically reposition businesses and implement operational improvements, resulting in value creation for shareholders, customers and employees. Since its founding in 1986, the firm has completed mergers and acquisitions valued at more than $30 billion.
Advanced Equities, Inc.:
Advanced Equities is a privately held financial services firm, recently ranked #11 in INC. magazine's top 500 privately held growth companies and regarded as one of the fastest growing brokerage firms in the country. Advanced Equities specializes as a venture capital investment bank, headquartered in Chicago, with institutional and retail sales nationwide.