Food & Beverage Acquisitions in 2020

Individual FoodService, a portfolio company sponsored by Kelso & Company, has merged with Brady Industries, a Las Vegas-based janitorial and sanitation (JanSan) distributor. The deal creates a significantly larger distributor of foodservice disposables and JanSan products with expanded geographic reach, 38 combined facilities and enhanced cross-selling opportunities.

Chicago-based private equity firm Benford Capital Partners completed a recapitalization of Brothers International Food Corporation, partnering with founder and CEO Travis Betters who will remain in place. The capital will be used to invest in sales, marketing, R&D and new product development across Brothers' ingredients and Brothers All-Natural divisions, and to pursue add-on acquisitions in the healthy snacks and food ingredients space.

EMERGE Commerce Ltd. (TSXV: ECOM) has acquired all outstanding shares of truLOCAL Inc., a Canadian direct-to-consumer meat subscription and marketplace, for up to CAD 16.8 million. The deal (effective December 31, 2020) included cash, EMERGE shares, deferred consideration and an earn-out, and brings a business with ~CAD 19.8M revenue (TTM) and operations in Kitchener, Vancouver, Calgary and Chicago into EMERGE's e-commerce portfolio.

McCormick & Company, Inc. agreed to acquire 100% of FONA International, LLC for $710 million in cash. FONA is a privately held manufacturer of clean and natural flavors headquartered in Illinois with approximately $114 million in annual sales and ~220 employees; McCormick said the deal expands its flavor solutions portfolio, technology capabilities and clean/natural offerings and is expected to be accretive to gross margin.

Valeo Foods has acquired It's All Good (IAG), a UK-based snack manufacturer, from NVM Private Equity. Since NVM's 2014 investment IAG grew to over £37m in annual sales and employs more than 250 people across two Gateshead sites, having developed the Manomasa brand and private-label manufacturing capabilities. The acquisition expands Valeo Foods' snack production and product portfolio in the UK.

GS Foods Group, a family of specialized foodservice distributors owned by affiliates of Highview Capital and A&M Capital Partners, has acquired Hayes Distributing to strengthen its presence in Northern California. The deal is an add-on to GS Foods' platform and is intended to expand the company's logistics, commodity expertise and school-nutrition offerings for K-12 customers in the San Francisco Bay Area.

Pamplona Capital Management has agreed to acquire Signature Foods from IK Investment Partners (IK VII Fund); financial terms were not disclosed and the deal is subject to antitrust approvals. Signature Foods, headquartered in Hilversum, Netherlands, is a leading chilled convenience food manufacturer (brands include Johma and Délio) with more than 600 employees, seven production sites across the Netherlands, Belgium and Poland, and revenues in excess of €300 million.

Funds managed by CapVest Partners have agreed to acquire Inspired Pet Nutrition (IPN), the U.K.'s leading independent pet food platform, from L Catterton. IPN—home to the Harringtons and Wagg brands—was scaled under L Catterton through manufacturing investment, brand marketing and DTC capabilities; CapVest said it will support further expansion across the U.K. and Europe. Terms were not disclosed.

Whole Earth Brands, Inc. agreed to acquire all outstanding stock of WSO Investments, the holding company for Wholesome Sweeteners, for $180 million in cash plus up to $55 million in earnouts. The acquisition, expected to close in Q1 2021 subject to customary antitrust review, expands Whole Earth Brands' portfolio in organic and natural sweeteners and is expected to be immediately accretive to earnings.

GS Foods Group, backed by affiliates of Highview Capital and A&M Capital Partners, has acquired family-owned produce supplier Fresno Produce, Co. The deal adds Fresno Produce’s local K-12 school nutrition footprint (serving ~100 schools and 73,000+ students) to GS Foods’ national foodservice distribution platform to expand regional capabilities in California.

Ergon Capital Partners IV SCSP has closed the acquisition of a majority stake in Millbo, BioNaturals International and BioNaturals Europe (together "Millbo–BioNaturals"), creating a global supplier of natural, clean-label bakery ingredients. The sellers (including Millbo/Boggiani family and other shareholders) will reinvest alongside Ergon, and the investment is intended to accelerate growth through geographic expansion, product cross-selling and a buy-&-build strategy.

TA Associates has completed an investment in Mid America Pet Food, the manufacturer of VICTOR Super Premium Pet Food, with Rx3 Growth Partners joining as a co-investor. TA and Rx3 acquired their stakes from Trinity Hunt Partners; financial terms were not disclosed. Mid America Pet Food manufactures kibble in-house at its Mount Pleasant, Texas facility and sells primarily through farm & feed and independent pet stores as well as select online retailers.

The Riverside Company, through its flavor platform with portfolio company National Flavors (NF), completed an add-on acquisition of Bonnie & Don Flavours (B&D), a Canadian manufacturer of natural and organic flavors and extracts. The deal is the second add-on to Riverside's flavor platform and is intended to expand the platform's geographic presence by adding a manufacturing facility in Canada.

Post Holdings agreed to acquire Almark Foods, a leading producer of hard‑cooked and deviled egg products, and will combine Almark with its Michael Foods egg business. The transaction (terms undisclosed) was expected to close in early 2021 and expands Post's refrigerated and foodservice capabilities, adding Almark's Yuma, Arizona hard‑cooked egg facility and other operations.

Norwest Equity Partners (NEP) has acquired Red Monkey Foods, a Springfield, Missouri-based maker of organic spices, seasonings and branded salts, from San Francisco Equity Partners (SFEP). Financial terms were not disclosed; NEP said it will partner with Red Monkey's management to scale the company's private-label and branded salt businesses across grocery, mass, specialty and e-commerce channels. SFEP, which invested in Red Monkey in 2016, more than tripled revenue and EBITDA during its ownership.

Kainos Capital, with a preferred and common equity investment from The Private Capital Group of MSD Partners, has acquired Tivity Health’s Nutrition Business — including **Nutrisystem** and **South Beach Diet** — for $575 million in cash. Tivity Health divested the business to focus on its core healthcare operations while Kainos plans to reestablish Nutrisystem as an independent, growth-oriented consumer nutrition company.

GrubMarket has acquired Leo's Apples Inc, a New York City-based fresh fruit provider, to accelerate its national expansion and strengthen its presence in the Northeast. Leo's Apples will remain based in New York and under its current management while gaining access to GrubMarket's WholesaleWare SaaS platform and broader supplier/customer network.

Bregal Partners has completed a financing partnership with Lakeview Capital to invest in The Mochi Ice Cream Co., maker of My/Mo Mochi Ice Cream. The investment will support growth, product innovation and expanded retail distribution across the United States. Lakeview Capital remains the company's majority owner and will continue to partner with Bregal on the next phase of growth.

Paine Schwartz Partners (via Paine Schwartz Food Chain Fund V) has made a strategic investment in Urban Farmer, a Manteno, Illinois-based manufacturer of plant-based specialty dough and frozen pizza products. The investment establishes a new platform for Paine Schwartz to expand in the better-for-you specialty dough and frozen foods category while supporting Urban Farmer's growth and manufacturing capabilities.

Brynwood Partners' newly-formed portfolio company, Great Kitchens Food Company Inc., has acquired ARYZTA North America's take-and-bake pizza business in a carveout transaction. Great Kitchens will be headquartered in Romeoville, Illinois and operate production facilities in Chicago Heights and Romeoville employing approximately 700 people; financial terms were not disclosed.

TPG and Northstar Group have agreed to acquire an 80% stake in Japfa Ltd's Southeast Asia branded dairy business (Greenfields) for US$236 million, with Japfa retaining a 20% interest. The strategic partnership gives the investors funding and senior management expertise to accelerate growth of the vertically integrated dairy business across Southeast Asia while Japfa focuses on its China dairy operations and other core businesses.

Los Angeles-based private equity firm Nexus Capital Management signed a definitive agreement to acquire the Natural Balance premium pet food business from The J.M. Smucker Co. Nexus said it will operate Natural Balance as an independent company under new CEO Brian Connolly and pursue brand reinvigoration and growth through pet specialty and e-commerce channels.

Chicago-based private equity firm Entrepreneurial Equity Partners (e2p) has made a growth investment in Salm Partners, the largest U.S. contract manufacturer of fully cooked sausages and premium hot dogs. The Salm family remains a significant shareholder; financial terms were not disclosed. The investment will support Salm's next stage of growth and investments in additional technology and capabilities.

Tate & Lyle PLC has acquired the remaining shares of Sweet Green Fields, a global stevia solutions business, bringing SGF's integrated stevia supply chain and product portfolio into Tate & Lyle. The deal strengthens Tate & Lyle's sweetener solutions capability and extends its presence in the faster-growing Asia Pacific region, with dedicated stevia production and R&D facilities in Anji, Zhejiang, China.

McCormick & Company agreed to acquire Cholula, a leading hot sauce producer and distributor, from private equity firm L Catterton for $800 million. L Catterton had acquired and transformed Cholula in April 2019, investing behind the brand and commercial capabilities to drive retail and foodservice growth prior to the sale.

Keurig Dr Pepper agreed to acquire the manufacturing, sales and direct-store-delivery (DSD) distribution rights to key KDP-owned and licensed brands across 37 counties in east Texas and northern Louisiana from The Red River Beverage Group and The Made‑Rite Company. The move brings brands such as Canada Dry, A&W, 7UP, Sunkist, Snapple, CORE and Bai into KDP’s company-owned DSD operations beginning February 2021; terms were not disclosed.

HelloFresh (via its US subsidiaries) agreed to acquire all outstanding equity interests of Factor75, Inc. (Factor), a Batavia, Illinois-based ready-to-eat meal delivery company, for up to $277 million (approximately $177M at closing plus up to $100M in performance-based earn-outs and incentives). The acquisition gives HelloFresh immediate scale in the US ready-to-eat market — Factor generated roughly $100M revenue in 2020 and brings production/fulfillment capacity, four facilities and a Chicago-area presence to HelloFresh's U.S. brand portfolio.

Shore Capital Partners completed a recapitalization of Old World Spices and Seasonings, a custom spice, seasoning and ingredient manufacturer based in Overland Park, Kansas. Shore will partner with management to invest in business development, R&D, sales and production infrastructure and pursue organic growth and inorganic consolidation through add-on acquisitions.

FreshEdge, the family of produce and specialty food distribution companies backed by Rotunda Capital Partners, has acquired McCartney Produce, a Paris, Tennessee-based distributor of fresh produce and specialty food products. The deal, which closed on November 18, 2020 (terms not disclosed), expands FreshEdge's presence in Tennessee, the Southeast and the Midwest; McCartney will continue to operate from its Paris facility with Raymon Randolph remaining as president.

Bacardi Limited acquired 100% ownership of TAILS, a London-based pioneer in pre-batched cocktails, after first taking a minority stake in 2018. The purchase brings TAILS’ bottled and on‑draught cocktail solutions and on-trade capabilities fully into Bacardi’s portfolio to support hospitality customers and expand its ready-to-serve cocktail offering across Western Europe and beyond.

Clearlake Capital Group has signed a definitive agreement to acquire The Wellness Pet Food Holdings Company (WellPet) from affiliates of Berwind Corporation. WellPet, headquartered in Tewksbury, Massachusetts, is a leading premium natural pet food and treats manufacturer with 400+ employees and production facilities in Indiana, Minnesota and the Netherlands; Clearlake plans to invest in growth, brand innovation and build a consolidation platform in the premium pet food category.

Vertical Wellness (VWEL) acquired The Organic Candy Factory in a stock transaction to expand its branded health-and-wellness portfolio into the fast-growing better-for-you candy segment. The acquisition gives Vertical Wellness an established organic, vegan gummy brand and a direct-to-consumer and retail footprint that the company plans to scale and integrate with its distribution and hemp/CBD capabilities.

Mars, Incorporated announced the acquisition of KIND North America, bringing the business into the Mars Family of Companies and combining it with KIND International. Founder Daniel Lubetzky will retain an ongoing financial stake and the deal is intended to accelerate KIND's expansion across geographies and product categories as part of Mars' healthy snacking platform.

Investcorp has entered into a definitive agreement to acquire a majority ownership position in Viz Branz Holdings Pte Ltd, a Singapore-headquartered manufacturer and distributor of instant cereal and beverage brands. The transaction was completed in partnership with CR Capital (the private investment arm of China Resources Group) and Fung Strategic Holdings; founder and CEO Mr. Ben Chng will retain a significant ownership stake. Viz Branz operates manufacturing facilities in China and Myanmar, employs approximately 1,300 people and generated about SGD 170 million in sales for the year to 30 June 2020.

FreshToHome, an India-based online fresh fish and meat retailer, raised $121 million in a Series C funding round led by the Investment Corporation of Dubai (ICD) with participation from Investcorp and other investors. Investcorp said it invested via its India strategy to support FreshToHome's expansion and scaling of its AI-powered, direct sourcing and e‑commerce supply chain across India and the GCC.

Utz Brands (NYSE: UTZ) agreed to acquire Truco Enterprises, the maker of On The Border tortilla chips, salsa and queso, from Insignia Capital Group for approximately $480 million in cash. The transaction closed in December 2020; Utz expects to leverage its direct-store-delivery network and broader capabilities to expand the On The Border brand into new markets.

An investor group led by Champlain Financial Corporation has acquired Bad Monkey Inc. (Bad Monkey Popcorn), a Montreal-based manufacturer and marketer of ready-to-eat and microwavable popcorn. The investment will support product development and expand the company’s distribution across Canada and into the United States; founders Joseph and Fabio Zeppilli will remain co-CEOs.

Crave Better Foods, maker of Chipwich, has acquired the SOLERO organic fruit bar business from Iris Brands, LLC and will merge the brand into its Connecticut operations. The founders of Iris Brands, Josh Hochschuler and Steve Gill, will partner with Crave Better Foods to market Solero alongside Chipwich and pursue synergies and scale in the frozen novelty category; terms were not disclosed.

Premium Brands Holdings Corporation and a coalition of Mi'kmaw First Nations (through FNC Holdings) agreed to acquire Halifax-based Clearwater Seafoods in a roughly $1 billion transaction. The deal — recommended by Clearwater's board and intended to address founder succession — will see the Mi'kmaw coalition hold Canadian fishing licences and invest about $250 million, with the sale expected to close in H1 2021.

3i Group plc has agreed to invest c. £125m alongside MPM's management to acquire a majority stake in MPM, the Manchester-headquartered maker of premium pet food brands Applaws, Encore and Reveal. The transaction represents a sale by ECI Partners (which achieved a 4.4x return) and is intended to accelerate MPM's international expansion, particularly into North America; completion is subject to regulatory clearance.

PAI Partners has agreed to acquire Winterbotham Darby from Equistone Partners Europe, with LDC exiting its minority stake; the company's management will remain invested. Following completion, Winterbotham Darby will join a new UK chilled food platform alongside Addo Food Group (also being acquired by PAI) to consolidate capabilities across chilled, continental and plant-based categories; terms were not disclosed and the deal is subject to regulatory approvals.

PAI Partners, through its PAI Mid‑Market Fund (PAI MMF), has acquired a majority stake in Angulas Aguinaga, the Spanish leader in refrigerated fish and seafood convenience products, from Portobello Capital and the founding family. The existing shareholders will reinvest and retain a 49.9% stake; PAI will support the company's Strategic Plan 2020–2025, focusing on brand reinforcement, new product categories and international expansion (notably Italy and France).

PAI Partners has agreed to acquire Addo Food Group and Winterbotham Darby (ComplEat Food Group) from existing investors including LDC, subject to regulatory approvals. The two UK chilled-food manufacturers will be combined under a newly created PAI-backed platform to drive product innovation, supply‑chain initiatives and growth across retail, convenience and foodservice channels.

Endless has acquired Hovis, the 134-year-old UK bakery brand, in a deal funded from Endless Fund IV for an undisclosed price. Hovis — headquartered in High Wycombe and employing about 2,700 people across eight bakery sites and a flour mill — will receive further investment to upgrade infrastructure, grow its branded range and capture additional share of the UK bakery market.

Aphria, Inc. agreed to acquire SweetWater Brewing Company in a transaction valued at approximately $300 million, marking Aphria’s strategic entry into the United States. The deal results in TSG Consumer Partners exiting its minority stake; SweetWater will continue operating from its Atlanta, Georgia brewery with broad distribution across the U.S.

Clearspring Capital Partners (Fund III) acquired a majority interest in Regal Confections, a Laval, Quebec-based confectionery distributor and manufacturer. Clearspring will support Regal's growth strategy with capital and operational support while existing shareholders (including Walter Mueller) remain with the company.

Quirch Foods, backed by affiliates of Palladium Equity Partners, has completed a merger with Colorado Boxed Beef (CBBC), creating a leading U.S. distributor and exporter of protein and ethnic food products. The combined company now operates more than 20 distribution centers, has approximately 1,700 employees and over $3 billion in annual sales; Altamont Capital Partners (CBBC's prior sponsor) will retain an equity stake.

TPG Growth has taken a majority stake in SmartSweets, the Vancouver-based better-for-you candy brand founded by Tara Bosch. Bosch remains the largest individual shareholder and will stay on the board while Douglas MacFarlane joins as CEO; financial terms were not disclosed. The investment is intended to accelerate SmartSweets' growth, distribution expansion, and product innovation.

Sovos Brands has completed its acquisition of Birch Benders, a Denver-based producer of better-for-you pancake & waffle mixes, toaster waffles and baking cups. The deal expands Sovos' portfolio into the breakfast and snacking categories and strengthens its presence in natural and specialty retail channels; Sovos is backed by private equity firm Advent International.

Spanos Barber Jesse & Co. (SBJ) completed a minority investment in The Perfect Purée of Napa Valley, with founder Tracy Hayward and key senior executives retaining significant ownership and remaining in their roles. The partnership will provide capital and strategic support to accelerate the company's growth in the foodservice and specialty ingredients markets.