Peak Rock Stays Busy in Food Sector

Peak Rock Capital has acquired Pretzels, Inc., a supplier of pretzels and extruded snack products. This transaction is the firm’s third platform investment in the food sector in the last two months.

Pretzels, Inc. is a contract and branded manufacturer of traditional, peanut-butter-filled, flavored, seasonal, and gluten-free pretzels, as well as other extruded snack products including puffed cheese curls, cheese balls and corn puffs.The company, led by CEO Chip Mann, was founded in 1978 and is based south of Ft. Wayne in Bluffton, IN with an additional facility near South Bend in Plymouth, IN (www.pretzels-inc.com).

“Over the past 40 years, the Huggins and Mann families have worked tirelessly to grow Pretzels into an industry-leading supplier serving premier brands and leading retailers,” said Mr. Mann. “We are excited to partner with Peak Rock and draw on the firm’s demonstrated expertise in growing businesses through expanded capabilities and investments in product development, which will allow us to further serve our customers.”

“This transaction represents our third platform investment in the food and beverage industry in the last two months, highlighting Peak Rock’s unique capabilities in this space,” said Anthony DiSimone, Chief Executive Officer of Peak Rock. “We will continue to seek additional platform acquisitions within the industry as well as add-on acquisitions that we believe could benefit from our ability to drive rapid growth and improve performance.”

Peak Rock makes debt and equity investments of $30 million to $300 million in middle market companies with revenues from $50 million to $1 billion and enterprise values from $50 million to $750 million. Sectors of interest include business and tech-enabled services, consumer, distribution and logistics, energy and related services, food and beverage, healthcare, industrials and manufacturing, metals, and technology.

“Our investment in Pretzels reinforces Peak Rock’s focus on investing in industry-leading food and beverage businesses that are positioned to capitalize on near-term growth opportunities,” said Robert Strauss, Managing Director of Peak Rock. “We are excited to partner with the company’s talented management team and the Huggins and Mann families to grow this snack platform through product innovation, investments in the company’s capabilities and add-on acquisitions.”

The buy of Pretzels, Inc. is Peak Rock’s ninth investment in the food and beverage industry.  The firm’s current investments in the food space include Louisiana Fish Fry, a manufacturer and supplier of branded, Louisiana-inspired food products (October 2018); TNT Crust, a manufacturer of pizza crusts (August 2018); Sweet Harvest Foods, a producer and distributor of honey (December 2016); Diamond Crystal Brands, a manufacturer and distributor of portion control and single-serve food and beverage products (May 2016); Gold Coast Bakeries, a manufacturer of specialty and organic breads, buns, and rolls (July 2017); and Berner Food & Beverage, a manufacturer of dairy-based shelf-stable snacks and beverages (November 2015).

Peak Rock Capital is based in Austin (www.peakrockcapital.com).

© 2018 Private Equity Professional | October 24, 2018

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