Hormel Foods has agreed to acquire Columbus Manufacturing, a branded manufacturer of salumi and related deli meat products, from Arbor Investments for $850 million. Arbor acquired Columbus in October 2012 from Endeavour Capital.
Columbus Manufacturing is a branded manufacturer of retail ready, super premium, artisanal salumi and related deli meat products. Salumi are Italian cured meat products and are predominantly made from pork (Editor’s note: “salami” is the plural of “salame” which is a type of “salumi”). Products are exclusively sold through supermarkets, club stores and specialty grocery stores across North America. The company, led by CEO Joe Ennen, was established by the Domenici and Parducci families in 1917 and is headquartered near San Francisco in Hayward, CA (www.columbuscraftmeats.com).
“We are pleased to add Columbus to the Hormel Foods family. Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category,” said Jim Snee, President and Chief Executive Officer at Hormel Foods. “Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavors, and products.”
Upon closing of the transaction, Columbus will continue to operate from its facilities in California and will report into the Refrigerated Foods segment of Hormel. “The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization,” added Mr. Snee. “This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers, and consumers. The synergies we can unlock with this acquisition are clear and I’m excited for the next evolution of our company.”
Hormel Foods (NYSE: HRL) is a global branded food company with over $9 billion in annual revenues. The company’s brands include SKIPPY, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly Guacamole, Hormel Black Label and more than 30 other brands. Hormel Foods is headquartered in Austin, MN (www.hormelfoods.com).
Columbus Manufacturing was advised by BofA Merrill Lynch and DLA Piper. In addition, Rothschild provided financial advice to Columbus Manufacturing. Hormel Foods was advised by Barclays and Faegre Baker Daniels.
Arbor, the seller of Columbus Manufacturing, invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999 the firm has acquired or invested in over 52 companies that were active in the frozen foods, baked goods, dairy, protein, foodservice equipment, bottling, ingredients, packaging, and distribution segments. In July 2016 Arbor closed its fourth equity fund, Arbor Investments IV LP, with$765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital. Arbor is based in Chicago (www.arborpic.com).
© 2017 Private Equity Professional | November 2, 2017
Sentinel Capital Partners has acquired Nekoosa, a manufacturer of specialty paper and film products used in the graphics and commercial print markets, from Wingate Partners.
Wingate partnered with the Nekoosa management team to acquire the business in October 2012. During the subsequent five years, Nekoosa completed four add-on acquisitions that diversified its product mix. “Prior to our investment, Nekoosa was largely a carbonless paper business with a vital base of commercial print merchant partners,” said Brian Steinbrueck, a Partner at Wingate. “CEO Paul Charapata and his team have transformed the business into a more diversified, higher performing company with a broader merchant base across graphics and commercial print channels. They have created a truly unique business with a differentiated product offering and have a bright future ahead.”
Wingate Partners makes control equity investments in manufacturing, distribution and service businesses, typically with revenues between $50 million and $250 million and EBITDA between $5 million and $25 million. The firm was founded in 1987 and is headquartered in Dallas (
Sentinel Capital Partners, the buyer of Nekoosa, invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare services, and industrials. The firm is headquartered in New York (
The Pohlad family has acquired PaR Systems, a maker of robotic automation and material handling equipment, from MML Capital Partners which acquired the company in July 2008 from American Capital.
MML Capital Partners, the seller of PaR, invests from €10 million and €50 million in private businesses for expansion, acquisitions, recapitalizations and management buyouts. The firm has offices in London, UK; Stamford, CT; and Paris, France (
Morbark, a portfolio company of Stellex Capital Management since March 2016, has acquired Rayco Manufacturing.
Stellex invests from $25 million to $100 million per transaction in companies experiencing some form of financial, operational or industry-driven distress. Target companies will typically have an enterprise value of $50 million to $500 million and will be located in the United States or Europe. Sectors of interest include automotive, aerospace, building products, defense, industrial equipment, metal fabrication and transportation. Stellex Capital Management has offices in New York and London (
