Eagle Family Foods Group (Eagle Foods), a portfolio company of Kelso & Company, has acquired Popcorn, Indiana (PI), a maker of ready-to-eat popcorn products.
According to Kelso, PI is one of the leading brands in the ready-to-eat (RTE) popcorn category. The company’s product offering includes kettlecorn, sea salt, aged cheddar, caramel and cheese, and other flavorings. PI was founded in 2002 by Richard Demb and Warren Struhl with Isiah Thomas, the former NBA and Indiana basketball star, as an early investor. The company is headquartered in Westport, CT and has manufacturing and supply facilities in Indiana (www.popcornindiana.com).
“We are thrilled to be part of the Eagle Foods family and excited to accelerate the achievement of Popcorn, Indiana’s full growth potential,” said Jared Konstanty, Chief Executive Officer of PI, who will remain with Eagle Foods through the end of the year to assist with the integration.
Eagle Foods is a producer and marketer of condensed milk, evaporated milk, and salty snack products. The company’s ready-to-eat popcorn products are sold under the G.H. Cretors brand name. Kelso & Company formed Eagle Family Foods Group in December 2015 to purchase from J.M. Smucker its Eagle Brand and private label condensed and evaporated milk business. Eagle Foods is headquartered in Richfield, OH (www.eaglefoods.com).
The buy of PI complements Eagle Foods’ G.H. Cretors brand and private label popcorn offerings. The RTE popcorn category has been growing at 5-6% annually. This growth is significantly faster than the broader snacking products category.
“Our acquisition of PI soundly demonstrates Eagle Foods’ commitment to expanding our product offerings to best meet the needs of our customers and consumers,” said Paul Smucker Wagstaff, Chief Executive Officer of Eagle Foods. “The PI brand is a strategic addition to our existing selection of RTE popcorn. We are excited to continue to grow the Eagle Brands platform both organically and through strategic acquisitions.”
Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 120 companies in a range of industry sectors. The firm is currently investing out of its ninth fund, Kelso Investment Associates IX, which closed in 2016 with $2.6 billion of capital. Kelso was founded in 1971 by Louis Kelso and is based in New York (www.kelso.com).
© 2017 Private Equity Professional | August 31, 2017
