Highlander Partners has acquired Chicago Custom Foods (DBA Kernel Season’s) from VMG Partners and Brian Taylor, the founder of the company. VMG Partners acquired Kernel Season’s in November 2012.
Kernel Season’s is a maker of branded popcorn seasoning sold to consumers at movie theatres and retailers, including mass merchants, grocery stores, specialty retailers and club stores, throughout North America and internationally. The company’s product portfolio includes more than a dozen popcorn flavors, ranging from simple butter and white cheddar to garlic parmesan and cheesy caramel corn, as well as popcorn oils and drizzles. The company, led by CEO Scott Lerner, was founded in 2000 and is headquartered near Chicago in Elk Grove Village (www.kernelseasons.com).
“We are excited about the new partnership with Highlander and will benefit from their strong food industry expertise,” said Mr. Lerner. “The management team is energized and our pipeline is full of new opportunities. Our brand has an exceptional consumer awareness and we are well positioned to continue our historical success in the foreseeable future.”
“This acquisition further emphasizes Highlander’s focus on investing in high-quality food companies and the consumer packaged goods sector in general,” said Jeff Hull, President and Managing Partner of Highlander. “Kernel Season’s is the #1 popcorn-seasoning brand in the US and has tremendous growth opportunities driven by innovation, new customer penetration and increased consumer awareness. In addition, we have a track record of implementing a ‘buy and build’ approach with our investments and we see significant M&A opportunities that would complement Kernel Season’s product portfolio and business strategy.”
Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include manufacturing, consumer products, industrial goods, automotive accessories, packaging, food and beverage, and specialty chemicals. The firm has over $1.2 billion in capital under management and is based in Dallas (www.highlander-partners.com).
VMG Partners, the seller of Kernel Season’s, invests in companies that are active in the food, beverage, wellness, pet products, personal care and household products sectors. The firm was founded in 2005 and has offices in San Francisco and Los Angeles (www.vmgpartners.com).
Regions Bank provided senior financing and Norwest Mezzanine Partners provided mezzanine debt and equity for this transaction.
Lincoln International was the financial advisor to Kernel Season’s and Greenberg Traurig provided legal services.
© 2018 Private Equity Professional | January 17, 2018
