Siguler Guff Facilitates AeroFarms' Refinancing Amid Vertical Farming's Profitability Milestone

AeroFarms, a pioneer in indoor vertical farming, has successfully refinanced its debt with the help of Siguler Guff and Waterside Commercial Finance, signaling a robust turnaround from its 2023 bankruptcy. This financial restructuring, coupled with equity investments from existing stakeholders, underscores the company's renewed focus on profitability and scalability in the vertical farming sector.

The refinancing deal, which includes a more favorable interest rate and terms, replaces the previous debt facility from Horizon Technology Finance. This strategic move not only alleviates AeroFarms' financial burdens but also positions the company for future growth, including the pre-construction activities for a second farm. The equity funding, contributed by investors such as Grosvenor Food & AgTech and Ingka Investments, comes at a time when the vertical farming industry faces significant funding challenges, as evidenced by the stark decline in investment from $2.1 billion in 2021 to $57 million in 2025.

Under the leadership of CEO Molly Montgomery, AeroFarms has streamlined its operations by focusing on high-margin microgreens and shutting down non-core facilities. This disciplined approach has already yielded profitability in recent quarters, a rare achievement in the capital-intensive vertical farming industry. Montgomery's vision of local food production that conserves natural resources is gradually becoming a reality, with the Danville, Va., facility serving as a testament to the viability of vertical farming.

The implications of AeroFarms' financial and operational turnaround extend beyond the company itself. As Stephan Dolezalek of Grosvenor Food & AgTech notes, AeroFarms' success demonstrates the potential of vertical farming to contribute significantly to the global fresh food supply chain. By producing nutritious greens locally and sustainably, AeroFarms is addressing critical challenges such as food security and environmental sustainability, making this development noteworthy for consumers, investors, and policymakers alike.

For more information on AeroFarms' innovative farming techniques, visit https://www.aerofarms.com.