Swander Pace Capital has reached an agreement to sell its portfolio company Pineridge Bakery to Switzerland-based global food business ARYZTA AG for $340 million. The sale is subject to review by the Canadian Competition Bureau and is expected to close in the second quarter of 2014.
Pineridge Bakery is a specialty bakery, manufacturing and marketing frozen and fresh specialty baked goods produced by two operating subsidiaries, Oakrun Farm Bakery and Gourmet Baker. The company sells private label and branded products in the foodservice, in-store bakery, convenience and grocery channels in North America. Pineridge Bakery is based in Ancaster, Ontario (www.pineridgegroup.ca).
“This transaction is the culmination of a successful six-plus-year partnership, and it’s a great result for all parties,” said Andrew Richards, Managing Director at Swander Pace Capital. “Pineridge Bakery will be able to transition their momentum to a new partner with tremendous experience and global reach; ARYZTA acquires a leader in its space in North America; and we are able to return a significant result to our investors while leaving a growing company in capable hands. We couldn’t be more thrilled.”
Swander Pace Capital invests in middle-market consumer products companies including branded and non-branded, manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $300 million in revenues. Swander Pace was founded in 1996 and has offices in San Francisco, CA; Bedminster, NJ; and Oakville, ON (www.spcap.com).
Since its 2007 acquisition by Swander Pace Capital, Pineridge Bakery has invested nearly $40 million in growth capital to support customer initiatives, expand the company’s product base and drive operating efficiencies. These investments have contributed to building an efficient, flexible manufacturer able to serve a broad customer base within the foodservice and grocery retail categories. Annual revenues for Pineridge are approximately C$230 million. During the term of its ownership by Swander Pace, Pineridge added in excess of 100 new jobs.
“We are extremely proud of our partnership with Pineridge Bakery and CEO Roger Dickhout, which has paved the way for the company’s next chapter of growth,” said Heather Smith Thorne, Director at Swander Pace Capital. “We collaborated with management on a number of strategic growth initiatives to help the company expand its reach across Canada and into the United States and we look forward to watching Pineridge Bakery continue its success as part of ARYZTA.”
Rothschild acted as financial advisor and Stikeman Elliott as legal advisor to Swander Pace Capital on the sale.
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-10-14
