Food & Beverage Acquisitions in Minnesota

Lyons Magnus LLC has acquired the operations and brands of Hormel Health Labs, LLC from Hormel Foods Corporation and launched a new division, Lyons Health Labs. The combined business — headquartered in Fresno, California — will market rebranded clinical nutrition and health products (including ReadyCare, THICK & EASY, Vital Cuisine, MED PASS 2.0, MightyShakes and Magic Cup) and expand Lyons Magnus' presence in medical nutrition and health-focused foodservice.

Cannae Holdings, Inc. and KDSA Investment Partners agreed to acquire a majority stake in The Watkins Company, a 156-year-old U.S. heritage brand known for spices, seasonings and extracts. Mark Jacobs, the current majority owner and chairman, will roll a significant equity stake into the transaction, which is expected to close in October 2024 and aims to drive growth across retail, new channels and geographies.

Platinum Equity and Butterfly have agreed to acquire Rise Baking Company from Olympus Partners, with Platinum and Butterfly acting as equal partners. Rise, a Minneapolis-based bakery manufacturer with nearly 4,000 employees and 20 North American production facilities, will remain led by CEO Brian Zellmer and will pursue further organic growth and M&A under the new owners.

Kaufhold's Kurds, a Sky Island Capital portfolio company, has acquired Curdco, Inc. dba Curdtown, a Buffalo, Minnesota-based producer of deep-fried white cheddar cheese curds. Curdtown, founded in 2011 and owned by Mark Largent, will be Kaufhold's Kurds' first add-on as the combined companies pursue expanded distribution through foodservice channels.

Wholesale Produce Supply LLC (WPS Fresh), a portfolio company of Cross Rapids Capital LP, has acquired the assets of G.O. Corporation I (operating as G.O. Fresh), a fresh-cut produce processor. The transaction expands WPS Fresh's fresh-cut capacity and product offerings to better serve foodservice distributors in the Upper Midwest; owner Marylou Owen will remain through a transition period.

Eddie M's has acquired and merged with Minnetonka-based American Fish and Seafood Inc., consolidating processing and distribution operations at Eddie M's 65,000 sq ft Plymouth, Minnesota facility. The deal preserves American Fish's legacy while expanding Eddie M's product assortment and capacity to serve retail and foodservice customers across the Midwest; terms were not disclosed.

FreshPoint, the specialty produce arm of Sysco Corporation, has agreed to acquire BIX Produce, a Minnesota-based specialty produce and fresh-cut distributor. The deal expands FreshPoint’s geographic footprint across the Upper Midwest, strengthens its specialty and fresh-cut offerings, and adds a 200,000 sq. ft. production and warehouse facility to its operations; the acquisition is subject to customary closing conditions.

MidOcean Partners, a New York-based private equity firm, has acquired QualiTech, a family-owned manufacturer of food ingredients, animal nutrition and plant nutrition products, from the Ploen family. The transaction will provide capital to expand QualiTech’s capabilities, capacity and product innovation as part of MidOcean’s food value chain investment strategy; terms were not disclosed.

New York-based private equity firm 4x4 Capital has made a significant investment in Yelloh (formerly Schwan's Home Delivery) to accelerate the company's transformation and growth in the frozen home food delivery market. Paul Schwan remains chairman while 4x4 Capital partner Alex Medicis assumes the interim CEO role as the company, headquartered in Marshall, Minnesota, pursues operational and growth initiatives.

Butterfly, a Los Angeles-based private equity firm focused on the food sector, has entered into a definitive agreement to acquire Milk Specialties Global, a vertically integrated manufacturer of dairy-based human and animal nutrition ingredients, from affiliates of American Securities. The transaction, terms undisclosed, is expected to close in Q1 2023 and the Milk Specialties leadership team, led by CEO David Lenzmeier, will remain in place.

AMCON Distributing Company (NYSE American: DIT) has acquired Henry's Foods, Inc., a foodservice and convenience-store distributor based in Alexandria, Minnesota. Henry's will operate as a wholly owned subsidiary led by President Kellie Janssen, with the acquisition intended to add foodservice capabilities and broader geographic reach to AMCON's convenience distribution platform.

Los Angeles-based private investment firm Pacific Avenue Capital Partners acquired Sunrich Products, the sunflower and roasted snacks division carved out from SunOpta. The deal transfers three Upper Midwest processing facilities, hybrid seed development activities, grower relationships and Sunrich's management team to Pacific Avenue to support focused growth in healthy human and pet snack and ingredient markets.

Kansas City-based FairWave Holdings LLC has acquired Minneapolis-based Up Coffee Roasters, bringing the local roaster into its specialty coffee collective. Up Coffee will continue to operate locally under owner David Chall (who becomes an investor in FairWave), retain its employees, and gain access to FairWave's marketing, technology and best practices.

Eagle Family Foods Group, a portfolio company of Kelso & Company, has acquired the Helper main meals and Suddenly Salad side-dish businesses from General Mills in a cash transaction valued at approximately $610 million. The two businesses reported combined net sales of about $235 million in fiscal 2021.

E S Foods has acquired the assets of Minneapolis-based school foodservice company Notables to expand its grab-and-go and meal kit offerings for K-12 programs. The transaction will allow E S Foods to incorporate Notables' product lines and customer base into its existing school foodservice portfolio; East Wind Advisors acted as exclusive financial advisor to E S Foods.

C.H. Guenther & Son LLC (CHG) has acquired Baldinger and Sons bakeries, expanding CHG's bakery manufacturing capacity and deepening relationships with quick service restaurant (QSR) customers across North America. The Baldinger-Sons management team will remain post-transaction; terms were not disclosed. CHG is owned by Pritzker Private Capital.

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.

An investor group led by Cross Rapids Capital L.P., with strategic partner The Baupost Group, has acquired Wholesale Produce Supply LLC from affiliates of Mill City Capital L.P. The transaction provides WPS with additional resources to accelerate organic and inorganic growth, broaden geographic reach, and expand its fresh-produce logistics and value-added service offerings.

Chicago-based private equity firm Woodlawn Partners acquired NH Holdings (the holding company for New Horizon Foods and Consolidated Management Company) from founder Jim Dyvig on October 29, 2021. NH Holdings, based in Minneapolis, manages contract foodservice programs across senior housing, education, treatment centers and county jails (over 170 customer sites in 15 states); the deal supports founder succession and plans for accelerated growth and operational improvements.

Swander Pace Capital, through its Branch Brook strategic partnership with United Natural Foods, Inc. (UNFI) and Jefferson Capital Partners, has acquired Mighty Spark Food Company, a Minneapolis-based better-for-you protein brand. Intrepid acted as exclusive financial advisor to Mighty Spark; the transaction brings new leadership and board appointments and aims to accelerate the brand’s retail distribution and growth.

Kohlberg & Company, L.L.C. has acquired DecoPac, Inc., the world’s largest supplier of cake decorations, from Snow Phipps Group, LLC. DecoPac — headquartered in Anoka, Minnesota with ~650 employees and facilities in the U.S. and U.K. — will be supported by Kohlberg to grow its core manufacturing, distribution and proprietary tech platforms (PhotoCake, Cakes.com); members of DecoPac management and the McGlynn family are investing alongside Kohlberg.

Bain Capital Private Equity has entered into a definitive agreement to acquire Dessert Holdings, a St. Paul–based premium dessert platform that includes The Original Cakerie, Lawler’s Desserts, and Atlanta Cheesecake Company. The acquisition from Gryphon Investors will support Dessert Holdings’ next stage of growth—pursuing product innovation, organic expansion and add-on opportunities—and is expected to close in Q2 2021 (debt financing led by Antares Capital).

Dallas-based private equity firm Sequel Holdings acquired a majority interest in Mrs. Gerry's Kitchen in July 2020. Mrs. Gerry's Kitchen, headquartered in Albert Lea, Minnesota, is a manufacturer and distributor of premium refrigerated salads and side dishes and will serve as a new platform in Sequel's food & beverage portfolio.

Rich Products Corporation has acquired Morey's Seafood International, a Plymouth, Minnesota-based processor and distributor of fresh, frozen and value-added seafood products, for an undisclosed amount. The deal brings roughly 200 Morey's associates and a 65,000-square-foot facility into Rich’s portfolio (which includes the SeaPak brand) and is intended to expand Rich's value-added seafood capabilities and product offerings in the U.S. market.

Harvest Partners SCF, LP (the non-control private equity strategy of Harvest Partners) has made a minority investment in 8th Avenue Food & Provisions, a leading private‑brand food manufacturer owned by Post Holdings and Thomas H. Lee Partners. 8th Avenue, headquartered in Minneapolis, produces private‑label peanut and tree nut butters, dry pasta and granola; the capital is intended to support organic growth and enable consolidation of the fragmented private‑brand food market. Terms were not disclosed.

Atlas Holdings has completed the acquisition of the Snacks Division of TreeHouse Foods for $90 million, establishing the business as Flagstone Foods headquartered in Minneapolis. The division, a leading private-label manufacturer and distributor of nuts, trail mixes and dried fruit with more than 800 associates and multiple U.S. plants, was sold as part of TreeHouse's plan to pay down debt and refocus its business.

CJ CheilJedang agreed to acquire U.S. frozen food maker Schwan's Company for $1.84 billion to establish a K‑Food expansion platform and scale its production, distribution and R&D footprint across North America. The deal excludes Schwan's Home Service division; financing includes approximately $1.34 billion from CJ funds and a $500 million loan backed by Schwan's Company, with 20% of shares from the major shareholder to be reinvested.

Stamford-based private equity firm Olympus Partners has acquired Rise Baking Company, a Minneapolis-headquartered manufacturer of premium cookies, dessert bars, artisan breads, and flatbreads, from Arbor Investments. Rise employs over 1,000 people across six North American facilities; Olympus said it will partner with management to continue organic growth and pursue transformational acquisitions to expand the business.

Brynwood Partners VII L.P. has acquired Cold Spring Brewing Company, Inc. from the Lenore family. The private equity firm said Cold Spring will operate as a standalone company but will benefit from the scale and national distribution and manufacturing footprint of Brynwood’s Harvest Hill Beverage Company investment to support growth and private-label/co-manufacturing opportunities.