Food & Beverage Acquisitions in 2021

FountainVest Partners has acquired CFB Group, a Shanghai-headquartered multi-brand food & beverage platform operator, from EQT Private Equity (EQT Mid Market fund). The transaction closed on 30 December 2021; under EQT's ownership CFB Group expanded to more than 1,100 stores and became the world's largest franchisee of Dairy Queen and a major Papa John's franchisee in China. FountainVest will assume ownership to support the company's next phase of growth.

The Chefs' Warehouse, Inc. (NASDAQ: CHEF) has acquired substantially all of the assets of CGC Holdings, Inc., dba Capital Seaboard, a specialty produce and seafood distributor based in Jessup, Maryland. The acquisition expands The Chefs' Warehouse’s specialty produce and seafood capabilities and strengthens its presence in the Mid-Atlantic market.

The Hain Celestial Group has acquired That's How We Roll (Proven Brands, Inc. and KTB Foods, Inc.), the owner of the ParmCrisps and Thinsters brands, from Clearlake Capital for approximately $259 million in cash. The target generated about $108 million of net sales for the 12 months ended September 30, 2021 and grew to over 250 employees under Clearlake's ownership; the deal deepens Hain's position in the better-for-you snacking category.

Core One Labs Inc. has completed the acquisition of all outstanding share capital of New Path Laboratories Inc., a British Columbia-based developer and manufacturer of natural health products and functional mushroom dietary supplements. The deal was paid in common shares of Core One and is intended to expand Core One's presence in the functional mushrooms market and add retail distribution channels to generate sales revenue.

ADM has acquired Flavor Infusion International, S.A. (FISA), a provider of flavor and specialty ingredient solutions serving customers across Latin America and the Caribbean. The bolt-on deal adds two manufacturing facilities in Panama and Colombia and a team of approximately 60 employees to ADM's Nutrition/Flavors business to expand capabilities and accelerate growth in the high-value flavors segment in the region.

San Francisco Equity Partners (SFEP) has acquired a majority stake in Rustic Bakery, a Petaluma, California-based specialty foods and cracker manufacturer; terms were not disclosed. Northstar Capital provided junior capital as a co-investor to help finance the transaction; SFEP said it will work with management to expand the brand's product portfolio, distribution and customer base.

Spanish private equity firm ProA Capital has acquired a 50% stake in Patatas Hijolusa in a transaction valued at about €100 million via a share purchase and a capital increase. The founding family (José and Carlos Gómez Pérez) will retain 50% and continue to run the business as Hijolusa pursues international expansion (France and Italy), increased R&D and digitalization, and a buy-and-build strategy.

Aurora Capital Partners has acquired Spray-Tek, LLC, a North American leader in specialized spray drying and ingredient processing solutions serving food & beverage, personal and home care, and pharmaceutical/nutraceutical markets. Aurora will partner with Spray-Tek's management to resource growth initiatives, expand drying capacity and capabilities, and accelerate both organic and inorganic growth.

CC Industries, the Crown family holding company, acquired CIE, a Marion, Indiana-based producer of grain-based specialty alcohols, from a widely held shareholder group. CIE will operate as a standalone business with its existing management team in place as CC Industries expands into a new sector vertical within its portfolio.

Chicago-based private equity firm Entrepreneurial Equity Partners (e2p) has made a control-oriented investment in Organic Milling Inc., a San Dimas, California contract manufacturer of organic cereals, granolas, snacks and ingredients. Financial terms were not disclosed; e2p said the partnership will support customer and geographic expansion and broaden product offerings.

Aramark has acquired independent UK contract caterer Wilson Vale, which will join Aramark UK and continue operating as an autonomous brand while retaining its leadership team, employees, clients and suppliers. The acquisition strengthens Aramark's capabilities serving premium Business & Industry clients and independent schools across the UK.

All Gold Imports Inc., a portfolio company of Regimen Equity Partners, has acquired The Hemisphere Group, an importer and distributor of bulk nuts, seeds and dried fruits based in Smithtown, New York. The acquisition is an add-on to All Gold designed to accelerate its expansion into the northeastern United States and strengthen its product supply and customer relationships; Hemisphere founder Adam Green will remain as President.

Arbor Investments has acquired Oregon Freeze Dry (OFD) from Endeavour Capital as the fifth platform investment for Arbor Fund V. OFD, founded in 1963 and headquartered in Albany, Oregon, is North America’s largest freeze-dryer serving consumer (Mountain House), military, and B2B pharmaceutical/nutraceutical customers; terms were not disclosed.

Chicago-based private equity firm Benford Capital Partners has formed Pasture Brands Holdings, LLC to recapitalize Farmers Hen House, a Kalona, Iowa–based specialty egg producer. CEO Ryan Miller will remain in place and Benford plans to invest in sales, operations, product development and marketing while pursuing add-on acquisitions to grow the platform.

Chicago-based private equity firm Shore Capital Partners has completed a partnership investment in BevSource, an outsourced beverage development and production services provider based in St. Paul, Minnesota. Shore will partner with BevSource's management to invest in business development, R&D, sales and marketing, and operations while exploring both organic growth and potential acquisitions to accelerate the company's expansion.

The Urgent Company, the consumer-brands subsidiary of Perfect Day, acquired Coolhaus from Sunrise Strategic Partners and other shareholders. The deal brings the Coolhaus team into The Urgent Company and will transition Coolhaus products to incorporate Perfect Day's animal-free dairy protein while expanding the buyer's portfolio of sustainable frozen dessert brands.

Funds managed by a joint venture formed by Investcorp, China Resources Capital Management and Fung Strategic Holdings (via the Asia Food Growth Fund I) completed a growth investment in Mo Xiaoxian, a Shanghai-headquartered instant food brand. The capital will support the company's expansion of its multi-channel distribution and scale its self-heating hotpot and instant meal product lines across China.

Aquamar Holdings, a Huron Capital portfolio company, has acquired Shining Ocean, Inc. from True World Group to expand scale and diversify Aquamar’s surimi and branded seafood product offerings. The deal strengthens Aquamar’s position as a leading surimi producer in North America and adds new products and innovation opportunities to its platform.

McCain Foods invested $55 million to take a minority stake in Strong Roots, a Dublin-based plant-based frozen food producer. The strategic partnership will support Strong Roots' international expansion—particularly into the U.S.—and explore growth through retail and foodservice channels; Goode Partners LLC exited its holding in the company.

Wind Point Partners, a Chicago-based private equity firm, has acquired Atlanta-headquartered kids' beverage company good2grow from Kainos Capital. The deal will provide good2grow with capital and Wind Point's strategic support to accelerate distribution, product innovation and penetration into additional retail channels.

Graham Partners has become a majority investor in Woodland Foods, a Waukegan, Illinois-based supplier and manufacturer of specialty culinary ingredients and plant-based products. Woodland Foods' management will remain in place as Graham Partners plans to leverage its industry resources and operational experience to accelerate the company's growth across foodservice, retail, industrial and e-commerce channels.

Utz Brands, Inc. has completed the acquisition of R.W. Garcia Holdings, LLC (RW Garcia) for $56 million, funded with cash on hand and borrowings under its revolving credit facility. RW Garcia is a family-owned maker of organic, better-for-you tortilla chips, crackers and corn chips with manufacturing facilities in Nevada and North Carolina; the deal adds production capacity and complementary product capabilities to Utz's portfolio and is expected to be accretive to earnings.

Vimian Group's Specialty Pharma segment Nextmune has acquired GlobalOne Pet Products LLC, a US-based maker of super-premium, rawhide-free pet treats and chews. The deal is valued at USD 50 million plus up to USD 30 million in earnouts, and will be consolidated into Vimian's Specialty Pharma segment; GlobalOne's co-founder Michael Farmer will continue to lead the business.

Inspired Pet Nutrition (IPN), the CapVest-controlled UK pet food group, has agreed to acquire Pet Food UK (PFUK) — owner of the Barking Heads, Meowing Heads and AATU brands — from Piper PE LLP and the company's founders. The deal, an add-on to IPN’s platform, is intended to broaden IPN’s premium and digital-first brand portfolio and support international and e-commerce-led growth; terms were not disclosed.

Benford Capital-backed Brothers International Food, LLC completed the acquisition of Dennick FruitSource, LLC, a Tampa-based supplier of tropical fruit juices, concentrates, and purees. The add-on expands Brothers' B2B fruit ingredients portfolio, broadens its customer base and supplier network, and will leave both businesses operating under their existing names in Rochester, NY and Tampa, FL.

Pittsburgh-based private equity firm 3 Rivers Capital has acquired a majority stake in Salt Lake City–headquartered Blue Chip Group, parent of the Augason Farms emergency preparedness food brand. The investment is intended to provide capital and operational support to expand Blue Chip's dry food and beverage contract manufacturing capacity and scale Augason Farms' retail and e-commerce distribution.

FreshEdge, a produce and specialty food platform backed by Rotunda Capital Partners, acquired Monteverde's, a fresh produce distributor located near Pittsburgh, Pennsylvania. Monteverde's operates from a 61,500 sq ft facility and will remain locally managed under the Monteverde family while expanding FreshEdge's footprint in western Pennsylvania and the eastern U.S.; terms were not disclosed.

Perwyn has completed the acquisition of a majority stake in Berlin-based raw pet food maker Barfer's Wellfood. The investment will support Barfer's growth as a D2C leader in the premium raw (BARF) pet-food segment and leverage Perwyn's experience in scaling direct-to-consumer businesses.

Baltimore-based Tilley Company, a portfolio company of SK Capital Partners, has completed a merger with Phoenix Aromas & Essential Oils, creating the combined Tilley‑Phoenix Group. The transaction — an add-on to Tilley's platform — was announced December 2021 and was reported as an exit for Caymus Equity Partners, expanding Tilley's product portfolio, technical/regulatory capabilities and global distribution in flavor & fragrance and other regulated markets.

Seattle-based private equity firm Pike Street Capital announced a growth investment in Fair Market, Inc. (FMI), a family-run wholesale specialty food distributor headquartered in Wentzville, Missouri. As part of the partnership Pike Street is bringing industry executive Rich Friedlen in as CEO while founder Marvin Eisenbath remains significantly invested; the capital will be used to expand FMI’s addressable markets and product lines.

Florida Food Products (FFP), backed by Ardian and MidOcean Partners, has acquired Comax Manufacturing Corp., a provider of clean-label natural flavor solutions focused on beverage and nutrition markets. The Calabretta family will retain an equity stake and Comax will continue operating its Melville, NY manufacturing facility and Marlton, NJ R&D site as part of FFP's Taste Division to expand FFP's clean-label flavor capabilities.

TA Associates has made a strategic growth investment to become the majority shareholder in Nactarome S.p.A., a Milan-headquartered developer and manufacturer of natural flavours, colours and functional ingredients for the food and beverage industry. Nactarome's management and current investor Ambienta will retain minority stakes; the partnership aims to accelerate international expansion, organic growth and continued M&A.

BlueTriton Brands, Inc. completed the acquisition of certain assets of Saratoga Spring Water Company, a premium spring water producer based in Saratoga Springs, New York. The deal brings the Saratoga brand and product lines into BlueTriton’s portfolio to expand its premium offerings and access a broader national hospitality and retail market; financial terms were not disclosed.

Sabrosura Foods, a Bloomington, Minnesota-based marketer of Hispanic food brands and a portfolio company of Centre Partners, has acquired Pancho's Mexican Foods, the Memphis-origin refrigerated queso dip brand founded in 1956. The add-on expands Sabrosura's snacking and Hispanic cheese portfolio and aims to broaden Pancho's nationwide distribution across mass, club and grocery channels; terms were not disclosed.

MHW, Ltd., a national beverage-alcohol service provider based in Manhasset, New York, has acquired two nationally licensed importation companies — USA Wine West and USA Wine Imports — to expand its wine importation, distribution and logistics capabilities. The acquired firms will continue servicing their existing client portfolios while partnering with MHW to scale services such as global consolidated logistics and expanded direct-to-retail offerings.

Armand Agra, a Founders Company backed by the Flocchini family and Founders Group of Food Companies, has acquired Seattle Fish Company. The deal transfers ownership from the Iacino family while retaining management and employees and positions Seattle Fish as part of the Purewater Foods platform to expand specialty protein and seafood distribution in the Rocky Mountain region.

Arbor Investments has completed a recapitalization of food-ingredient supplier Dr. G's Creations, marking the third platform investment for Arbor Fund V. The partnership will provide capital and operational support to help Dr. G's scale production, add infrastructure and systems, and expand distribution to meet growing demand from large QSRs, casual-restaurant chains and food processors; terms were not disclosed.

True has acquired a majority stake in Manchester-based D2C energy drink brand Sneak to accelerate international expansion, build out retail distribution channels and scale the business. The deal — True's first investment from its Fund III — will support co-founders Will Peirce and Jonny Teeling as the brand expands beyond its digitally-led foundation.

Riveter Capital, a women-owned private equity firm, completed the acquisition of Healthy Lunch Box, Inc., a Houston-based provider of nutritious cafeteria-style meals to charter schools, private schools, Head Start programs, health clinics, and adult-care centers. The deal — Riveter's first investment — will support growth and operational expansion under new president Nakita Johnson while honoring founder Theresa Barajas' legacy.

RoundTable Healthcare Partners has established Everwell Health, a new functional-ingredients platform, and Everwell made its first acquisition by buying Nutrition21 from JDS Therapeutics. Nutrition21, a Saddle Brook, New Jersey–based developer and marketer of clinically substantiated ingredients for dietary supplements, functional foods and beverages, will operate under the Everwell platform to accelerate R&D, product development and commercial expansion.

Main Street Gourmet has completed the acquisition of Meurer Brothers Bakery, a Wisconsin-based wholesale pastry manufacturer. The deal expands Main Street Gourmet's platform of premium wholesale bakeries (backed by Shore Capital) by adding Meurer Brothers' artisanal danish and pastry capabilities to better serve ISB, restaurant, club, and convenience customers.

The Hershey Company entered into definitive agreements to acquire Dot's Pretzels LLC and Pretzels Inc., expanding its salty-snacking portfolio and pretzel manufacturing capabilities. The combined transaction is valued at approximately $1.2 billion (about $1.0 billion net of expected tax benefits) and is expected to close by the end of 2021, subject to customary regulatory approvals.

Solina, a European savoury ingredients leader backed by private equity firm Astorg, has completed the acquisition of Asenzya Inc., a custom dry seasoning and flavour solutions provider headquartered in Oak Creek, Wisconsin. The deal gives Solina its first direct presence in the United States and expands its North American capabilities and customer reach; Asenzya has about 145 employees and annual sales of roughly $50 million.

Tilia Holdings, a Chicago-based private investment firm focused on the food supply chain, announced a growth investment in Stone Ground Bakery and that Stone Ground will merge with Wheat Montana, a Tilia portfolio bakery. Stone Ground will continue to operate under its existing brand with co-owners Tammy Hines and Derrick Schmerse remaining in place, and the combined businesses will leverage Wheat Montana's distribution network to expand Stone Ground's reach across the Western United States.

Gourmerica Inc. made an investment in and formed a strategic partnership with Dave's Gourmet LLC to accelerate the specialty food brand's growth and support future M&A activity. As part of the transaction, David Neuman joined Dave's Gourmet as President; 41 North LLC acted as financial advisor and Dominion Bank provided senior financing support.

Regal Confections, backed by Clearspring Capital Partners, has acquired Tosuta International Sales Ltd., an importer and distributor of confectionery products headquartered in Langley, British Columbia. The acquisition is an add-on to strengthen Regal’s gas & convenience presence in Western Canada, expand its brand portfolio (including Koala and Livewires), and add entry into the throat lozenges category.

3D Corporate Solutions, an Olympus Partners portfolio company, has acquired Missouri-based LinkOne Marine Solutions, a manufacturer of dried, fresh, and frozen marine proteins for the premium pet food industry. The acquisition is an add-on to 3D's existing network of facilities and expands its portfolio and supply-chain capabilities for premium pet food ingredient customers.

The Coca-Cola Company has acquired the remaining 85% of BODYARMOR for $5.6 billion in cash, giving Coca-Cola full ownership of the premium sports performance and hydration beverage brand. BODYARMOR will be managed as a separate business within Coca-Cola's North America unit and will remain based in New York, with Co-founder Mike Repole and President Brent Hastie continuing under a consulting and transition-services agreement.

Prairie Capital VII, LP partnered with industry executives Tyler Hawes and Eric Vorchheimer and Forever Cheese co-founders Michele Buster and Pierluigi Sini in a recapitalization of Forever Cheese in November 2021. Forever Cheese, headquartered in New York, is an importer and distributor of specialty cheeses and gourmet foods; the recapitalization will support company-building investments in sales & marketing, technology, human capital and add-on acquisitions.

GS Foods Group, a specialized foodservice distribution platform owned by affiliates of Highview Capital and A&M Capital Partners, has acquired Thurston Foods, a family-owned broadline food distributor based in Wallingford, Connecticut. The add-on deal expands GS Foods' footprint across the Northeastern U.S. and augments its product offerings and capabilities to serve education, healthcare and foodservice customers.