Wind Point Partners has acquired Gehl Foods, a producer of aseptic dairy products, from the Gehl family which founded the company in 1896.
Gehl Foods is a maker and contract manufacturer of ready-to-serve, real dairy products including cheese sauces, puddings, yogurt, and dairy-based beverages. The company uses an advanced aseptic process to eliminate microorganisms that cause dairy foods to spoil and at the same time locks in freshness and taste. Aseptic processing is the process by which a sterile (aseptic) product (typically food or a pharmaceutical) is packaged in a sterile container in a way that maintains sterility.
Gehl’s products are sold in restaurants and retail stores under the Gehl brands and other brands under the company’s contract manufacturing operations. Gehl Foods was founded in 1896 by J.P. Gehl and is headquartered northwest of Milwaukee in Germantown, WI. The company had revenues in 2014 of nearly $250 million and employs over 330 people at its three Germantown facilities and nearby West Bend bottle-making operation (www.gehlfoods.com).
With the close of the transaction, President and CEO Katherine Gehl, the fourth generation of the Gehl family to lead the company, is handing over management of the business to food industry veteran Eric Beringause, who was previously CEO of Sturm Foods. Ms. Gehl became President and CEO of the business in 2007 and will continue as a member of the Board of Directors under Wind Point’s ownership.
Since 2007, Gehl Foods has grown by every key measure. Sales increased almost 80% and the company added more than 100 jobs. Investments in new technologies exceeded $100 million, and both product innovation and the new business pipeline have reached all-time highs.
“Wind Point’s investment in Gehl Foods reflects our belief in the company’s continued growth potential following the outstanding track record and significant investments in technology and people under Katherine Gehl’s leadership,” said David Stott, Principal at Wind Point Partners. “We plan to continue to invest in the operations in both Germantown and West Bend, and we look forward to working with the entire team at Gehl Foods.”
Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.8 billion in capital under management. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).
Mr. Beringause said that beyond the financial and operating appeal Gehl Foods offers, there is substantial alignment on non-financial attributes. “Wind Point is a big believer in safety and quality first, transparency, and individual performance. Those are assets that Gehl Foods has in ample supply and they are ideal platforms for growth. The Gehl family has done a fantastic job positioning Gehl Foods for continued success. I am excited about the opportunity to lead the company into its next phase of growth.”
Chicago-based investment bank City Capital Advisors (www.city-cap.com) served as financial advisor to Gehl Foods.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-27-15
