Chicago-Based Zabiha Halal Protein Processor Receives Capital to Grow Operations

CHICAGO, Oct. 21, 2014 /PRNewswire/ -- Barkaat Foods, a Chicago-based, Zabiha Halal protein processor, recently announced that it secured a Shariah-compliant credit facility from FirstMerit Corporation (FirstMerit) and Prairie Street Capital with the help of Sikich Investment Banking (Shariah law is the moral code and religious law of Islam). Barkaat will use this capital to expand its existing operations and develop new product lines. Barkaat expects to double its current staff of 40 people in the next year.

Barkaat, located on the stretch of Chicago's Halsted St. once famous for its Union Stock Yards, produces lamb, goat, veal and now beef that staff slaughter and process in compliance with strict Zabiha Halal (the Islamic method of slaughter) standards.

According to the Pew Research Center, the world's Muslim population is expected to increase by roughly 35 percent in the next 20 years – almost double the growth rates projected for non-Muslims. In the U.S. alone, the increasingly diverse Muslim population is expected to double over the same time period. As consumer demand rises and more institutions – including schools, hospitals and workplaces – must accommodate religious dietary restrictions, Barkaat serves a rapidly growing and underserviced market for authentic Halal cuisine, with both its production business as well as its catering offerings.

Shariah-compliant funding brings unique challenges to a company that wants to secure financing, largely due to restrictions on interest-bearing instruments (or "Riba"), which make debt financing difficult. Sikich Investment Banking facilitated a solution known as Murabaha Financing by structuring a partnership between FirstMerit, a $25 billion diversified financial services company, and Prairie Street Capital, a Chicago-based boutique investment firm.

"Sikich's creativity in structuring this deal allowed us to access to the capital we need to grow and bring more jobs to the Chicago area," said Ahmed Irfan Khan, CEO of Barkaat Foods. "We were able to take advantage of the favorable debt environment while respecting the religious laws that are at the foundation of our business," added Mohammad Imran Khan, Chief Strategy Officer of Barkaat Foods.

"Identifying the right partnership required dedication and flexibility from everyone involved in order to secure Shariah-compliant growth capital for Barkaat," said Christopher Geier, Partner-in-Charge of Sikich Investment Banking. "It's particularly meaningful to help a local, family-owned company pursue its strategy to provide a valuable product to more consumers across the country," he went on to say.

About Sikich Investment Banking
Based in Chicago, Sikich Investment Banking is part of Sikich LLP, a leading professional services firm specializing in accounting, technology, investment banking and advisory services. The firm has more than 600 employees and 11 offices across the country. Sikich Investment Banking is the firm's corporate finance and advisory practice. Through its wholly-owned subsidiary, Sikich Corporate Finance LLC, a registered broker-dealer and member of FINRA/SIPC, it provides capital raising, mergers and acquisitions and strategic advisory services tailored to middle market clients in the U.S. and abroad. The firm's investment banking partners have expertise in negotiating complicated issues and structures and navigating the complexities inherent in industries that include technology, life sciences, manufacturing and others. Visit Sikich Investment Banking at www.sikich.com/IB for more information. 

Securities are offered through Sikich Corporate Finance LLC, a registered broker dealer with the Securities Exchange Commission and a member of FINRA/SIPC.

About Barkaat Foods

Barkaat Foods protein processing plant is a 100 percent Muslim-owned and operated USDA facility located minutes from downtown Chicago. Livestock that is permissible in Islam is the only livestock that staff slaughter and process at the plant. Animals are hand slaughtered by Muslims, which accommodates universal Zabiha and high quality standards.

About Prairie Street Capital

Prairie Street Capital, Inc. is a boutique investment firm that provides growth capital, strategic guidance and operating expertise to help companies maneuver the challenges that come with growth.

About FirstMerit Bank

FirstMerit Corporation is a $24.5 billion diversified financial services company headquartered in Akron, Ohio. FirstMerit is the 29th largest bank in the nation by assets. The bank has played a vital role in improving the lives of its customers and strengthening communities for more than 165 years.

Media Contact:
Brenna Clairr O'Tierney
Sikich Marketing & Public Relations
Bco'[email protected]
312-541-9300; ext. 101 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/chicago-based-zabiha-halal-protein-processor-receives-capital-to-grow-operations-236783766.html

SOURCE Sikich LLP

Related Links

http://sikich.com