Gryphon Investors has completed the sale of its portfolio company Flagstone Foods to TreeHouse Foods for $860 million. This transaction was first announced on July 1, 2014.
TreeHouse paid Gryphon Investors and other shareholders $860 million in cash for the business, subject to an adjustment for working capital, and financed the transaction through a combination of borrowings under its existing credit facility and a $374 million equity issuance.
Flagstone Foods is a provider of branded and private-label snacks to retailers across North America in the multi-billion dollar healthy snacks sector. The company was formed in November 2010 when Gryphon simultaneously acquired two independent companies, Ann’s House of Nuts, the largest private-label manufacturer and marketer of trail mix and snack nuts in the world, and American Importing Company (Amport Foods), the largest private-label manufacturer and marketer of dried fruits. Flagstone Foods reported sales of approximately $697 million for the 2013 fiscal year. The company is based in Saint Paul, MN (www.flagstonefoods.com).
TreeHouse Foods (NYSE: THS) is a multinational food processing company specializing in producing private label packaged foods for the retail grocery and foodservice distribution channels. Products include non-dairy powdered creamers and sweeteners; condensed, ready to serve and powdered soups; refrigerated and shelf stable salad dressings and sauces; powdered drink mixes; single serve hot beverages; specialty teas; hot and cold cereals; macaroni and cheese, skillet dinners, and other value-added side dishes and salads; salsa and Mexican sauces; jams and pie fillings; pickles and related products; aseptic sauces; and liquid non-dairy creamer. TreeHouse Foods is headquartered in the Chicago suburb of Oak Brook (www.treehousefoods.com).
Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $100 million of capital in companies with sales ranging from $50 million to $250 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. The firm is based in San Francisco (www.gryphoninvestors.com).
2014 PEPD • Private Equity’s Leading News Magazine • 7-30-14
