Kainos Capital has sold its portfolio company Florida Food Products to MidOcean Partners.
Florida Food is a formulator and manufacturer of vegetable and fruit-based ingredients used in the food, beverage, and pet nutrition industries. The company, led by CEO Jim Holdreith, was founded in 1954 by Alexander “Jerry” Brown and is headquartered near Orlando in Eustis, FL (www.floridafood.com).
“Our collaboration with Kainos has been instrumental in our ability to capitalize on the growth opportunities in our key markets,” said Mr. Holdreith. “The Kainos team helped us to recruit a world-class team, invested heavily in our operating facility and set us up for continued success.”
Kainos Capital acquired Florida Food in October 2016. “Our interest in Florida Food was driven by our belief in the importance of functional ingredients that provide demonstrable health benefits and the overall movement by consumers toward clean label products,” said Andrew Rosen, Managing Partner of Kainos. “This thesis also led to other investments by our firm in companies such as Milk Specialties Global, InterHealth Nutraceuticals and Kettle Cuisine. We are pleased by our successful partnership with the Brown family and believe that Florida Food is positioned for a very exciting future.”
Kainos Capital invests from $50 million to $150 million of equity in manufacturers and marketers of food products, as well as other consumer products in the household and personal care industries, and over-the-counter health and nutritional products sectors. In November 2016, Kainos closed Kainos Capital Partners II LP with total equity commitments of $895 million. The new fund was oversubscribed and closed at its hard cap. Kainos was founded in January 2012 and is based in Dallas (www.kainoscapital.com).
“We were very fortunate to be selected by the Browns to be the stewards of this great business that their family built. Together we recruited a very talented team led by Jim Holdreith, and invested significant resources in innovation and manufacturing capacity so that Florida Food could capture the next phase of growth,” said Kevin Elliott, a Partner at Kainos.
“Choosing to partner with Kainos in 2016 was a great choice,” said Jerry Brown, the son of the founder. “They did everything they said they would do when we first met and we’re thrilled that they helped us craft and achieve our vision for Florida Food.”
MidOcean, the buyer of Florida Food, invests in middle market companies that are active in the business and consumer services sectors. The firm was founded in 2003 and is based in New York (www.midoceanpartners.com).
Houlihan Lokey was the financial advisor to Florida Food Products and Winston & Strawn provided legal services.
© 2018 Private Equity Professional | September 11, 2018