Pinnacle Foods has entered into an agreement to acquire Garden Protein International, a maker of food using plant-based protein and sold under the brand name Gardein™, from Founder and President Yves Potvin and TSG Consumer Partners, for C$175 million.
Garden Protein International is a manufacturer of center-of-plate foods using plant-based proteins. Products, sold under the Gardein (garden + protein) brand name, include chicken strips and tenders, ground beef, fish fillets, and other types. The company’s products are sold at 22,000 traditional and non-traditional retail locations as well as over 5,000 restaurants and 100 colleges, universities as well as other venues across North America. Gardein is expected to generate net sales of C$65 million in 2014. The company was founded in 1989 by Yves Potvin and is headquartered in Vancouver, BC (www.gardein.com).
TSG Consumer Partners makes control and non-control investments of $15 million to $100 million in companies with EBITDAs of $3 million to $50 million where there is an opportunity to enhance value by extending brand, expanding distribution and improving operations. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories sectors. The firm has $2.9 billion in equity capital under management and is headquartered in San Francisco (www.tsgconsumer.com).
“The acquisition of Gardein is a key enabler to continue building our Birds Eye brand into the leading health and wellness brand focused on helping Americans eat more vegetables. By bringing Gardein under the Birds Eye umbrella, we will accelerate growth through expanded distribution, marketing and innovation,” said Pinnacle Foods Chief Executive Officer Bob Gamgort.
Perella Weinberg Partners is serving as financial advisor to Pinnacle Foods, and Houlihan Lokey is serving as financial advisor to Garden Protein International.
Pinnacle Foods is a producer, marketer and distributor of shelf-stable and frozen branded food products. The company is headquartered in Parsippany, NJ and has approximately 4,400 employees. The purchase price of C$175 million will be funded by Pinnacle Foods with available liquidity (www.pinnaclefoods.com).
“We believe that plant-based protein is at the tipping point of becoming mainstream, making Gardein an exciting new growth platform for the Birds Eye business. We congratulate Yves and the Gardein team for pioneering new territory in food and look forward to welcoming them to Pinnacle,” added Mr. Gamgort.
2014 PEPD • Private Equity’s Leading News Magazine • 11-14-14
