American Capital has invested $31.5 million in the form of a second lien term loan to support Snow Phipps’ acquisition of Teasdale Foods from Palladium Equity Partners. Teasdale is a provider of private label and branded bean and hominy products to the retail, food service and wholesale channels.
“We were impressed with the responsiveness and dedication of American Capital’s Sponsor Finance Group,” said Sundip Murthy, who oversees consumer investing at Snow Phipps. “They proved to be a reliable financing partner and we hope to collaborate on future investment opportunities.”
Teasdale Quality Foods is the largest producer and marketer of canned hominy and beans in the Western United States, primarily serving the Hispanic market under its Teasdale brand and other branded products such as Aunt Penny’s and Emilio’s. The company sells its products through the retail, foodservice, government and industrial channels, including grocery chains, distributors, club stores, dollar stores, restaurant chains, commissaries, Hispanic food manufacturers and the U.S government. Teasdale owns and operates manufacturing facilities in Atwater, CA (headquarters), Hoopeston, IL and Greeley, CO. The company was founded in 1930 (www.teasdale.net).
“Teasdale is a recognized industry leader and the largest provider of both conventional store brand and organic store brand beans in the US, serving a large diversified customer base throughout the retail, foodservice and industrial channels,” said Ryan Brauns, American Capital Managing Director and Head of Sponsor Finance. “This is our first time supporting a new Snow Phipps platform investment and we’re delighted to partner with them in this business. Our Sponsor Finance Group continues to search for new opportunities to build relationships with private equity sponsors and support their new buyouts, refinancings, add-on acquisitions, dividend recapitalizations and growth opportunities.”
American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate and structured products. American Capital and its affiliated funds have invested approximately $12 billion in over 270 portfolio companies in support of private equity firms’ company buyouts, refinancings, add-on acquisitions, dividend recapitalizations and growth opportunities. Founded in 1986, American Capital has $80 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).
GE Antares (www.geantares.com) served as administrative agent on a $104 million senior secured credit facility to support the Teasdale acquisition by Snow Phipps.
Snow Phipps makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging between $40 million and $100 million. The firm has $1.5 billion of assets under management and was co-founded by Ian Snow and Ogden Phipps in April 2005. Snow Phipps is headquartered in New York (www.snowphipps.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-5-14
