Kronos Foods Acquired by E2P

Entrepreneurial Equity Partners (E2P) has acquired Kronos Foods, a manufacturer and distributor of Mediterranean food products, from Grey Mountain Partners which acquired the company in September 2016 from Prospect Partners.

Kronos’ products include gyros meat, pitas and flatbreads, hummus, sauces, and desserts primarily under the Kronos and Sinbad Sweets brands.  The company also produces custom products for quick service retail, fast-casual, and family dining restaurant chains.

Founded in 1975, Kronos began as a small seller in Chicago’s Fulton Street Market but, through new products and growth in distribution, has become a manufacturer of Mediterranean and other premium foods, with distribution nationwide through foodservice channels and major retailers, including broadline and specialty distributors, club stores, mass merchants and grocery chains. Kronos has more than 270 employees and is based in the Chicago suburb of Glendale Heights.

“We are excited to add Kronos Foods to our portfolio,” said Mark Burgett, a managing partner at E2P. “The company’s vast array of products and dynamic ability to serve customers with limited-time offerings developed by its in-house R&D team have positioned the company well to capture on-trend demand for global cuisine and protein-based foods. We are excited to leverage our extensive network and experience in the food sector to help Kronos introduce additional new products and capabilities that meet customer interests and further drive growth.”

Chicago-based E2P was founded by Mr. Burgett, a former managing director at Wind Point Partners, and CJ Fraleigh, a former CEO of Shearer’s Foods and Sara Lee North America. The firm makes control-oriented investments of $25 million to $150 million in companies that have revenues of at least $50 million and are active in the food and consumer packaged goods industries. Sectors of specific interest include established food and beverage products and brands, private label and contract manufacturing.

The buy of Kronos is the third platform investment for E2P’s inaugural fund, Entrepreneurial Equity Partners Fund I LP, and it follows the platform buys of Sara Lee Frozen Bakery, a maker of frozen bakery and dessert products headquartered in the Chicago suburb of Oakbrook Terrace (acquired in July 2018 in partnership with Kohlberg & Company); and Daniele International, a Rhode Island-based maker of branded and private label specialty meats (acquired in September 2019).

Grey Mountain is currently investing from its $425 million third fund, which was raised in 2013, and invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest are widely varied and include manufacturing; distribution; financial and professional services; food and beverage; health and wellness; and specialty chemicals. Grey Mountain was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo and is based in Boulder, Colorado with additional offices in Minneapolis and Pittsburgh.

Harris Williams was the financial advisor to Kronos on this transaction.

© 2020 Private Equity Professional | February 14, 2020

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