Falconhead Capital has acquired a controlling stake in Multi-Flow Industries, a provider of fountain beverage equipment and drinks, from CMS Private Equity which purchased a majority share of the company in 2008.
Multi-Flow produces bag-in-the-box packages of branded and private label concentrated iced teas, juices, carbonated soft drinks, energy drinks and fortified functional water. Multi-Flow also distributes fountain beverage syrup concentrates and services fountain beverage dispenser equipment to over 4000 retail accounts. Customers include bars, restaurants, clubs, hotels, assisted living and nursing facilities. It also manufactures private label fountain beverage concentrates for wholesale foodservice companies. Multi-Flow services accounts across 15 metropolitan areas through 14 east coast warehouses and serves the remainder of the US through 90 independent distributors.
Multi-Flow was founded in 1937 by Sam Gottlieb to provide fountain beverages directly to restaurants, bars and institutional care facilities. Today, the company is led by its CEO Ken Schnarrs and is headquartered north of Philadelphia in Huntingdon Valley, PA (www.multiflow.net).
“We are delighted to acquire Multi-Flow, which is a leader in the fountain beverage sector in its geographic markets,” said David Moross, Chairman and CEO of Falconhead Capital. “The company is well positioned for growth through strategic acquisitions and a range of attractive internal opportunities. We look forward to partnering with Ken Schnarrs and his team to enhance the value of Multi-Flow for the benefit of all its stakeholders.”
“The Falconhead team has a long history of supporting and growing companies within the food and beverage sector and Multi-Flow will benefit from its operational expertise as we work together to grow our business both organically and through strategic acquisitions,” said Mr. Schnarrs.
Falconhead Capital invests in consumer-oriented companies in the sport, leisure, lifestyle, and media categories that have revenues between $20 million and $150 million and EBITDA between $5 million and $30 million. Typical equity investments range from $10 million to $50 million per transaction and up to $100 million with co-investors. Falconhead’s portfolio now includes Multi-Flow Industries, GPS Industries, Javo Beverage Company, and Rita’s Water Ice Franchise Company. The firm was founded in 1988 and is based in New York (www.falconheadcapital.com).
CMS Private Equity, the seller of Multi-Flow, is the private equity arm of CMS Companies which specializes in investing in middle market and mature companies that have enterprise values between $5 million and $50 million and a minimum EBITDA of $1 million. Sectors of interest include building materials and services; consumer products and services; distribution and logistics; for-profit education; health and fitness; franchisors; healthcare services; professional and business services; and restaurants. The firm typically invests in Eastern United States. CMS Private Equity was founded in 2004 and is based in Wynnewood, PA (www.cmsco.com).
Grant Thornton (www.grantthornton.com) served as Falconhead’s financial and tax advisor on this transaction.
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-16-15
