Falfurrias Capital Partners has agreed to acquire the food business assets of The C.F. Sauer Company (Sauer). This transaction includes only Sauer’s food business assets and excludes the company’s real estate portfolio. At closing, the acquired business will be known as Sauer Brands Inc.
The C.F. Sauer Company manufactures a line of condiments, spices, seasonings and extracts, including well-known brands Duke’s Mayonnaise, The Spice Hunter, Sauer’s, Gold Medal, and BAMA. The company’s regional brands and private-label products are sold through the retail and foodservice channels.
Sauer, founded in 1887 by Conrad Frederick Sauer, has 860 employees and manufacturing facilities in Richmond, VA (headquarters); Greenville, SC; New Century, KS; and San Luis Obispo, CA (www.cfsauer.com).
At closing, Conrad F. Sauer IV, the fourth generation of his family to lead the company, will retire as president and CEO but will continue to serve on the board of directors of the company. Joining the company will be William Lovette, a 37-year food industry veteran with Tyson Foods and Pilgrim’s Pride, who has been named interim CEO and executive chairman. Falfurrias Capital Partners principal Chip Johnson and partner Ken Walker will also join the company’s board of directors.
“I am humbled to be able to have a small part in leading the next phase of growth and have a hand in making The C.F. Sauer Company an even more dynamic force in the markets it serves,” said Mr. Lovette. “The foundation of the company has always been its exceptional people, in Richmond, Greenville, San Luis Obispo and New Century, and the success they have created over the past 132 years provides a great benchmark for us as we move forward.”
Falfurrias makes equity investments in growth-oriented middle-market companies that have revenues in excess of $10 million and EBITDAs in excess of $2 million. In February 2019, Falfurrias closed its latest fund, Falfurrias Capital Partners IV LP, at its hard cap of $500 million. The firm’s earlier fund closed with $275 million of capital in March 2017. Falfurrias was founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America, and Marc Oken, former CFO of Bank of America, and is based in Charlotte, NC (www.falfurriascapital.com).
“Falfurrias Capital Partners is honored to partner with Conrad and the rest of The C.F. Sauer Company family to build on the legacy of success created over four generations,” said Marc Oken, chairman of Falfurrias Capital Partners. “The C.F. Sauer Company is a proven performer in a durable growth market, and we see great potential to accelerate growth and provide new opportunities for employees throughout the company.”
Falfurrias has prior experience in the food industry, including its current ownership of Best Impressions, a Charlotte, NC-based provider of catering services that was acquired in October 2018; and through its prior ownership of Bojangles, a Charlotte, NC-based operator and franchisor of chicken quick-service restaurants with over 500 restaurants located throughout the southeastern United States. Falfurrias acquired Bojangles in September 2007 and sold the company to Advent International in August 2011.
“I am so grateful to all of the people of The C.F. Sauer Company who have helped write our company’s tremendous success story over the past 132 years, and I look to the future with great optimism,” said Mr. Sauer. “We have found the ideal growth partner in Falfurrias Capital Partners, and I look forward to working with Bill and the rest of the team to author the next chapter.”
RBC Capital Markets is the financial advisor to The C.F. Sauer Company.
The sale of the food business is subject to shareholder approval at The C.F. Sauer Company’s annual meeting on July 15, 2019.
© 2019 Private Equity Professional | June 24, 2019
