Food & Beverage Acquisitions in 2019

Blue Point Capital Partners (Fund IV) acquired Country Pure Foods, Inc., a leading producer of better-for-you beverages and related juice products, in partnership with Country Pure management and former CEO Raymond Lee. The deal includes Silver Springs Citrus, LLC and positions Blue Point to grow the platform across grocery retail, healthcare and education foodservice, and into plant-based and frozen-novelty beverage categories.

Belgian snack producer Beltaste (Vanreusel) announced it will acquire Dutch artisanal croquette and bitterballen maker Oma Bobs, with the transaction effective early January 2020. The deal strengthens Beltaste's presence in the Netherlands and aims to grow Oma Bobs' artisanal production while preserving its independent character.

Ardian has agreed to acquire Cérélia, a Paris-headquartered producer of ready-to-bake dough, pancakes, crepes and cookies, from the IK VII Fund advised by IK Investment Partners. Management, led by Guillaume Réveilhac, will retain a meaningful stake alongside Ardian as the buyer seeks to accelerate Cérélia's organic growth, acquisitions and geographic expansion across Europe and North America.

First Bev has made an investment in MAD TASTY, a hemp‑infused, zero‑sugar functional sparkling water brand founded by musician Ryan Tedder. The capital and partnership are intended to help MAD TASTY expand distribution and accelerate brand growth across consumer and creative markets.

Southeastern Mills, Inc., a fourth-generation family-owned food ingredients company based in Rome, Georgia, has acquired JMH Premium, a Salt Lake City-based developer and manufacturer of flavor bases, gravies, marinades, dressings and other food ingredients. The acquisition expands Southeastern Mills' B2B food ingredients capabilities and adds custom flavor development and manufacturing capacity to its business-to-business foods segment.

PAI-backed Froneri has agreed to acquire Nestlé’s U.S. ice cream business for $4.0 billion, including brands such as Häagen-Dazs, Drumstick, Edy’s/Dreyer’s, Outshine and Skinny Cow. The deal — expected to close in Q1 2020 subject to regulatory approvals — gives Froneri a major presence in the U.S. and will make it the global #2 ice cream manufacturer.

The Dohmen Company Foundation announced the acquisition of Milwaukee-based Focused Fork, a personalized whole-foods preparation and distribution and meal-delivery business. Dohmen said the purchase supports its shift from treatment to prevention by adding food-preparation and distribution capabilities to its health-focused, foundation-owned enterprise.

Chicago-based private equity firm Wind Point Partners has invested in Tropicale Foods, a leading U.S. manufacturer of Hispanic frozen novelties under the Helados Mexico brand. The founders will remain involved as Wind Point partners with management to expand the brand, product innovation and geographic distribution.

Benestar Brands, a Highlander Partners portfolio company, has acquired Arboleda Foods, the holding company behind the Chicas branded tortilla chips. The acquisition will allow Benestar to add the Chicas brand to its salty snacks platform and leverage its distribution network to grow the brand nationally.

VIG Partners announced that its portfolio company Winplus signed an agreement to acquire Hanwha Hotels & Resorts' food service business unit for about 100 billion won (~$85 million). The bolt-on deal covers the unit's institutional catering and foodstuffs retailing divisions (accounting for ~84% of the unit's 2018 revenue) and is intended to strengthen Winplus and VIG's footprint in Korea's food and grocery retail market.

Cinven, the international private equity firm, has agreed to become a shareholder in Barentz, a Netherlands‑headquartered global specialty ingredients distributor, for an undisclosed consideration. Cinven said it will support Barentz’s management to accelerate organic growth and pursue a buy‑and‑build strategy to expand geographically and strengthen the Group’s infrastructure and R&D capabilities.

Exponent Private Equity has acquired UK ethnic-food producers and distributors TRS and East End Foods and will integrate them into a single group operating under the Vibrant Foods platform. The combined business — headquartered outside London and led by Rohit Samani (Chairman) and Umesh Parmar (CEO) — will have a combined turnover of approximately £300m and will continue to operate the TRS and East End brand names.

Nothing Bundt Cakes, a portfolio company of Levine Leichtman Capital Partners, acquired six Nothing Bundt Cakes franchisee bakeries in the San Diego market, converting them to company-owned operations. The acquisition expands NBC's West Coast footprint, provides a training and R&D base for the region, and strengthens support for local franchisees.

Kelso & Company has acquired a majority equity interest in Individual FoodService (IFS), a Bell, California-based distributor of foodservice disposables, packaging and janitorial/sanitation products, from prior investor Sole Source Capital. Kelso said it will partner with IFS management to accelerate the company's acquisition strategy, expand capabilities and invest in operations; Kenneth Sweder was appointed Chairman of the IFS board.

FoodChain ID, a Paine Schwartz Partners portfolio company, has acquired Diversified Laboratories, an analytical testing lab based in Chantilly, Virginia. The deal expands FoodChain ID’s contaminants testing capabilities — adding Diversified’s USDA-accredited and ISO 17025-certified pesticide, PCB, antibiotic and mycotoxin testing to its food safety, quality and sustainability platform.

San Francisco-based private equity firm Encore Consumer Capital completed an investment in Murry's, Inc., a family-owned frozen French toast manufacturer based in Greenbelt, Maryland. The partnership will support Murry's next phase of growth, leveraging Encore's experience in consumer packaged foods and private-label channels.

NexPhase Capital has announced an investment in Popcornopolis, a Vernon, California-based manufacturer of premium ready-to-eat popcorn. Terms were not disclosed; NexPhase partners with the founders and will place Jamie Kaufman on the board while Doug Corbett will serve as Executive Chairman to help scale the CPG brand and expand distribution.

Sysco Corporation acquired Hawaii-based Armstrong Produce and Kula Produce, two sister fresh-produce wholesalers and distributors, which will operate as part of Sysco’s FreshPoint specialty produce division. The deal gives Sysco direct access to the Hawaiian market and expands FreshPoint’s local distribution capacity while retaining the acquired companies’ leadership and associates.

Butterfly Equity has signed a definitive agreement to acquire a majority stake in Orgain, a Los Angeles-area private equity firm said in a press release. Ontario Teachers' Pension Plan will join as a minority investor, and Orgain founder Dr. Andrew Abraham will retain a significant minority stake and remain CEO; the partnership is intended to scale the brand, accelerate product innovation and expand global distribution.

Japanese snack maker Calbee, Inc. acquired Warnock Food Products, a Madera, California-based contract manufacturer of branded and private-label snack foods. Brown Gibbons Lang & Company served as exclusive financial advisor to Warnock; terms were not disclosed. Calbee said the purchase supports its expansion into the North American snack market and will leverage Warnock's product development and distribution capabilities.

The Rise Fund, TPG's global impact investment fund, has invested in Pearl Dairy, Uganda's largest dairy processor, to support expansion and strengthen its smallholder farmer supply chain. As part of the transaction, Rise Fund representatives will join Pearl Dairy's board to help scale processing capacity, enhance operations, and expand the company's reach across Africa and into select Asian markets.

Eddy Packing Co., Inc., a protein-processing platform backed by Insight Equity Holdings LLC, has acquired a majority of the assets of Carolina Pride Foods, LLC. The deal adds Carolina Pride’s regional branded and private-label meat portfolio and processing capacity to Eddy’s operations, expanding Eddy’s ability to serve retail and foodservice customers in the Southeast.

Ergon Capital Partners-backed Dolciaria Acquaviva has acquired Milanopane S.r.l., a Buccinasco-based producer of high-quality puff pastry salty snacks. Milanopane generates approximately €6 million in sales and employs 40 FTEs; the acquisition expands Dolciaria's product offering into salty frozen snacks, strengthens its position with modern trade customers, adds a Northern Italy production hub and is expected to deliver commercial and cost synergies.

LaSalle Capital, with mezzanine financing from NewSpring Mezzanine, has completed the acquisition of Joseph's Frozen Foods from Brynwood Partners. Joseph's, headquartered in Haverhill, Massachusetts, is a manufacturer of frozen Italian pastas, sauces and meal solutions and will use the partnership capital to support product innovation and production capacity expansion.

Sole Source Capital LLC acquired a majority interest in Worldwide Produce, a leading distributor of fresh produce, dairy and specialty foods serving Southern California and Nevada. Sole Source plans to use Worldwide Produce as a platform for regional consolidation and to invest in the company’s technology and geographic expansion; transaction terms were not disclosed.

Made in Italy Fund, the private equity vehicle managed by Quadrivio & Pambianco, has made a growth investment in PROSIT S.p.A. to support the creation of a cooperative/platform of premium Italian wineries and accelerate international expansion. PROSIT will act as the platform to aggregate complementary family-owned wineries (targeting >€100m revenue in 3–4 years) and pursue add-on acquisitions and export-led growth.

Centre Partners, a middle-market private equity firm, has made an investment in Wisconsin Cheese Group Holding, LLC (WCG), a manufacturer of branded and private-label Hispanic food products. Financial terms were not disclosed; Centre has installed Brian McInerney as CEO and Danette Bucsko as CFO to support expansion into new channels, categories and customers.

KIND Healthy Snacks acquired Creative Snacks Co., a family-owned better-for-you snack manufacturer based in North Carolina. The deal expands KIND’s product portfolio with Creative Snacks’ award-winning clusters, trail mixes, granolas and pretzels and gives KIND access to Creative Snacks’ manufacturing capabilities and retail distribution.

Hometown Food Company, a Brynwood Partners portfolio company, acquired the Arrowhead Mills and SunSpire brands from The Hain Celestial Group for $15 million, including a manufacturing facility in Hereford, Texas and its employees. The deal expands Hometown Foods' presence in the organic/better-for-you baking and chocolate categories and adds manufacturing capability to the firm's consumer foods platform.

Vestar Capital Partners has agreed to make a minority growth investment in Simple Mills to support the natural-foods company's new product development, brand-building and distribution expansion. Terms were not disclosed; the deal is expected to close in October 2019 and Simple Mills will continue to operate as an independent company under founder and CEO Katlin Smith.

Highview Capital acquired Gold Star Foods from Castle Harlan and will merge it with Highview portfolio company Good Source Solutions to form a new holding company, GS Foods Group. Alvarez & Marsal Capital Partners participated as a direct investor in the combined business; the combined company will create a national specialized foodservice distribution platform focused on K-12, corrections and other non-commercial segments.

TorQuest Partners has made a platform investment in Joriki Inc., a Canadian contract manufacturer of beverages and select food products, to support the company's next phase of growth. Terms were not disclosed; Joriki operates three Canadian manufacturing facilities (Scarborough and Pickering, Ontario; Delta, British Columbia) with more than 200 employees and capabilities including hot-fill, cold-fill and aseptic PET/carton lines.

The Champlain Seafood platform, backed by Champlain Financial Corporation and Claridge Inc., has acquired Captain Dan's Seafood, a New Brunswick-based processor of lobster and snow crab. The acquisition expands the platform's processing capacity and product offering, strengthens its position in global seafood markets, and aims to grow sales in North America, Europe and Asia.

Agriculture Capital has acquired Firestone Pacific Foods, a frozen fruit processor that operates IQF processing, packing and cold storage facilities. The investment will expand Firestone’s processing and cold storage capacity and help Agriculture Capital build a vertically integrated fruit platform (AC Foods) with access to blueberry farms and private-label, industrial and retail outlets.

Brightstar Capital Partners completed the acquisition of Capstone Nutrition, a developer and manufacturer of vitamins, minerals and dietary supplement products. The transaction was completed in partnership with members of Capstone’s senior management and is intended to accelerate growth into new markets and products while enhancing the company's R&D and manufacturing capabilities.

The Hershey Company completed its acquisition of ONE Brands, LLC, a maker of low-sugar, high-protein nutrition bars, for $397 million (approximately $325 million net of tax benefits). The purchase expands Hershey's better-for-you snacking portfolio and is expected to be accretive to earnings in the first full year post-close.

Bristol Bay Native Corporation (BBNC) will acquire Blue North Fisheries and Clipper Seafoods and organize them under a newly formed subsidiary, Bristol Bay Alaska Seafoods, to strengthen its position in the Bering Sea freezer longline cod fishery. The deal closes on September 30 and BBNC says the acquisition will drive operational efficiencies, product expansion and greater market consolidation while retaining existing management and staff.

Chicago-based private equity firm Entrepreneurial Equity Partners (e2p) has acquired Daniele International, a Rhode Island-based producer of specialty Italian charcuterie and deli meats, from the Dukcevich family, who will retain a significant stake. The deal marks e2p's second platform investment and aims to leverage the firm's food and CPG expertise to support Daniele's growth across retail, club and mass channels.

Shamrock Foods Company is acquiring the Boise, Idaho operations of Food Services of America (FSA) in a transaction required as part of regulatory approval for US Foods’ acquisition of SGA Food Group. The purchase expands Shamrock Foods’ geographic footprint in the western United States and aims to maintain customer service continuity for local restaurant, healthcare and institutional customers.

Swander Pace Capital acquired Café Valley, a leading wholesale bakery with production facilities in Phoenix, AZ and Marion, IN, to expand its consumer food portfolio. Stellus Capital Management provided senior debt financing and an equity co-investment to support the transaction; Café Valley's existing CEO Brian Owens will remain in place.

ACH Food Companies, Inc. has acquired Anthony's Goods, a fast-growing digital-native brand known for almond and coconut flours and other natural, organic baking ingredients sold primarily via e-commerce and Amazon. Anthony's Goods will continue to operate independently under its founders while ACH expands its natural and organic product portfolio and e-commerce presence.

Bhang Inc. acquired Red Ace, LLC (Red Ace Organics), an organic functional beverage company known for concentrated beetroot shots sold at more than 1,400 retail locations. The acquisition gives Bhang immediate entry into the functional beverage market and expands its CBD/terpene beverage product pipeline and retail distribution footprint.

Chicago-based HC Private Investments has entered a strategic partnership and taken a majority stake in Epicurean Butter Company, a Colorado-based maker of flavored finishing butters. Founders Janey and John Hubschman remain in senior leadership roles and retain a significant minority stake; HCPI will provide capital to support sales growth and investments in manufacturing capabilities. Terms were not disclosed.

Isla Délice, a Perwyn-backed French producer of branded Halal meat products, has acquired Hoca Meat Products, a Belgian manufacturer operating two production facilities near Kortrijk. The acquisition supports Isla Délice's international expansion across Europe and Christophe Hoste will continue to manage Hoca within the Isla Délice group.

Tipton Mills, a Columbus, Indiana-based contract manufacturer of powdered food and beverage blends, was sold by Compass Group Equity Partners to the company’s current management team in a management buyout. Compass Group, which acquired Tipton Mills in 2015 and supported growth and a plant expansion, exited the investment after more than doubling the business’s revenues.

Keystone Capital completed an investment partnership with Hometown Foods USA, a Miami-based manufacturer of bagels and cake products. The partnership will support Hometown Foods' product and channel expansion and Keystone said it will pursue further bakery-sector acquisitions alongside the company; terms were not disclosed.

TA Associates completed a strategic growth investment in Gong cha Group, the global Taiwanese bubble/milk tea franchisor founded in 2006. Partners Group provided supporting debt and equity financing alongside investments from Gong cha regional founders and management; proceeds will support global expansion and franchise operations.

Insight Equity Holdings LLC has acquired Strauss Brands LLC, a family-owned producer of ethically raised specialty meats headquartered in Franklin, Wisconsin. The Strauss family retained a significant ownership stake and Randy Strauss remains CEO; Insight Equity will invest capital to build a new state-of-the-art processing facility, expand production capacity, and grow Strauss's retail and foodservice channels.

Highlander Partners, through its newly-formed food platform Benestar Brands, acquired Evans Food Group from Wind Point Partners. Evans is a leading global producer of branded and private-label pork rinds with six production facilities (five in the U.S. and one in Mexico); Highlander intends to use Benestar as a buy-and-build platform in the snack food category.

Audax Private Equity acquired a controlling interest in Stonewall Kitchen, a York, Maine-based premium specialty food producer, from Centre Partners. Audax said it will support Stonewall Kitchen’s growth and buy-and-build strategy while existing management, including CEO John Stiker, remain in place; financial terms were not disclosed.