Archives for August 27, 2020

Advent Adds Another Brand to Sovos

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Sovos Brands, a portfolio company of Advent International, has agreed to acquire Birch Benders, a maker of pancake and waffle mixes, toaster waffles, and pancake and baking cups.

Birch Benders’ products include organic, plant-based, non-GMO, protein, paleo, and keto alternatives. The company was founded in 2011 by CEO Matt LaCasse and CMO Lizzi Ackerman and is headquartered in Denver, Colorado.

“We are absolutely thrilled to be joining the Sovos family,” said Mr. LaCasse. “We believe the wealth of experience and resources of the team at Sovos will allow us to reach even more consumers with our delicious, innovative, easy-to-make offerings made with nutrient-rich, quality ingredients.”

Advent formed Sovos (Latin for unique or one-of-a-kind) in January 2017 to acquire Michael Angelo’s Gourmet Foods, an Austin-based producer of frozen Italian entrées with approximately $100 million in annual sales. Advent’s investment strategy with Sovos is to acquire and build one-of-a-kind and high-quality brands in on-trend categories to build a company of scale in the consumer packaged goods industry.

In July 2017, Sovos closed the buy of its second add-on acquisition, Rao’s Specialty Foods, a New York City-based maker of pasta sauce; and in October 2018 Advent merged Noosa Yoghurt, a Bellvue, Colorado-based maker of yogurt that it had acquired in November 2014, into Sovos.

When the Birch Benders acquisition closes, expected during October 2020, Sovos will have products in seven food categories – sauces, yogurt, frozen entrées, pancake & waffle mixes, frozen waffles, soups and dry pasta – and annual retail sales of more than $750 million.

Berkeley, California-based Sovos is led by Todd Lachman, President and CEO; Larry Bodner, CFO; and Bill Johnson, Chairman. Mr. Lachman has a 25-year record as a senior executive at major consumer products companies, including Mars, Del Monte Foods, H.J. Heinz, and Procter & Gamble. Mr. Bodner has over 25 years of experience as an operationally focused financial executive at companies including Big Heart Pet Brands, Del Monte Foods, Walt Disney, and Procter & Gamble. Mr. Johnson was formerly Chairman, CEO and President of H.J. Heinz. He had a 31-year career at Heinz, where he grew top- and bottom-line results across multiple segments to transform the company into a global food industry leader.

“With its absolutely delicious products that deliver against healthy consumer lifestyles such as paleo and keto diets, Birch Benders is the perfect next addition to our growing portfolio of one-of-a-kind brands. Birch Benders shares Sovos’ commitment to making simple and delicious foods that use only the highest quality ingredients,” said Mr. Lachman. “With our proven ability to transform brands by unleashing growth and deepening consumer affinity, we are thrilled to take Birch Benders to a new chapter of growth while diversifying Sovos into new categories.”

Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs 195 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $57 billion in assets under management and has completed more than 350 private equity transactions.

Private Equity Professional | August 27, 2020

Gen Cap Buys Eastern Business Forms

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Gen Cap America has acquired Eastern Business Forms in partnership with the company’s management team.

Eastern Business Forms (EBF) is a specialty manufacturer of 903 filter paper, 903 diagnostic devices and procedure packs. EBF’s products are uses by healthcare professionals in the collection and in-vitro storage of blood and urine samples to test and screen newborns for a range of disorders and abnormalities.

903 papers must be manufactured to meet strict industry standards set by the Clinical Laboratory Standards Institute and must have high levels of purity, consistency, and absorption characteristics. In 1998, 903 sample collection paper became the international standard for body fluid sample collection, transport, analysis, and archiving.

EBF was founded in 1964 and is headquartered near Greenville in Mauldin, South Carolina.

“We are excited to support the team at EBF as they continue their long legacy of quality and reliability in the 903 diagnostics space,” said Mark Isaacs, a managing director at Gen Cap. “EBF for decades has been an industry leader, and we are thrilled to be partners with them as they move into the next phase of growth.”

With the closing of this transaction, the EBF management team is now led by newly appointed President and CEO, Brad Nelson (he has been with EBF since 2008), and Executive Vice President and Chief Marketing Officer, Will Adams.

“This was exactly the partnership we had hoped to find as we looked to transition into the next generation of management here at EBF,” said Mr. Nelson. “We’re thrilled to have brought Gen Cap on board and look forward to building on our long track record of success with the team here at EBF.”

Gen Cap America invests in companies with revenues between $10 million and $200 million and EBIT of $2 million to $15 million that are active in the manufacturing, distribution, or service sectors. Gen Cap was founded in 1988 and is based in Nashville.

“EBF fits perfectly with Gen Cap’s investment model of backing management teams at companies with long histories of success,” said Barney Byrd, the CEO of Gen Cap.

The buy of EBF is Gen Cap’s twelfth platform acquisition for its fourth fund, Southwest Fund VII LP, which had a final close at its hard cap of $250 million in January 2017. Earlier this month, Gen Cap closed on the buy of TFM Services, a Wichita, Kansas-headquartered provider of janitorial and floor maintenance services to retail, commercial, health care, industrial, and education facilities.

Generational Equity was the financial advisor to EBF on this transaction.

Private Equity Professional | August 27, 2020

Grant Thornton Adds Supply Chain Pro

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Grant Thornton has hired Kirk Waldrop as a managing director in the firm’s operations transformation practice.

Prior to joining Grant Thornton, Mr. Waldrop was a vice president at Chainalytics, an Atlanta-based consulting, analytics, and market intelligence firm. Earlier, from 2002 to 2012 he led the space and homeland security supply chain and logistics business at Booz Allen Hamilton which advised NASA, Air Force Space Command, Air Force Space and Missile Systems Center, United States Coast Guard, and the Federal Emergency Management Agency.

In his new role at Grant Thornton, Mr. Waldrop will provide the firm’s private equity clients with supply chain services, including strategy and transformation; demand and supply planning; supply chain operations; sourcing and procurement; analytics; and transportation and network optimization.

“During this time of historic disruption and uncertainty, a strong supply chain management strategy is essential,” said Jonathan Eaton, national supply chain practice leader at Grant Thornton. “Kirk boasts decades of supply chain experience in industries ranging from private equity and retail to manufacturing and public sector — making him a vital source of supply chain management knowledge.”

Mr. Waldrop has an MBA degree in supply chain management and an MS degree in logistics and transportation from the University of Maryland. He earned his undergraduate degree in industrial engineering from the Georgia Institute of Technology.

“Kirk’s wealth of knowledge within the private equity supply chain sector is unparalleled,” added Carlos Ferreira, national managing partner for private equity at Grant Thornton. “Not only will he help our commercial and public sector clients define their supply chain strategy and navigate the challenging current environment, but he’ll also help grow Grant Thornton’s private equity offerings.” Mr. Ferreira was named as Grant Thornton’s national managing partner for private equity earlier this month, and he is also the firm’s global co-leader for transaction advisory services.

Founded in Chicago in 1924, Grant Thornton is the US member firm of Grant Thornton International, one of the world’s largest audit, tax and advisory firms. The firm has revenues in excess of $1.9 billion and operates more than 50 offices with more than 590 partners and 8,500 employees.

Private Equity Professional | August 27, 2020

Shyam Shah Joins O2

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O2 Investment Partners has hired Shyam Shah as the firm’s newest associate.

Mr. Shah will be responsible for evaluating new transactions, due diligence, underwriting, and working with O2’s portfolio companies.

Prior to joining O2, Mr. Shah was as an investment banking analyst at Duff & Phelps where he was active with the firm’s consumer and industrial clients on sell-side mergers and acquisitions.

“We are excited for Shyam to join the O2 team and given his relevant transaction experience, we envision his addition to be a great fit as we continue our strong portfolio growth and seek new opportunities,” said Luke Plumpton, a partner at O2.

Mr. Shah has his BBA degree in finance and accounting from the University of Michigan.

O2 makes control investments in companies with EBITDAs from $4 million to $15 million located anywhere in the US and Canada with a preference for companies based in the Midwest or the Great Lakes regions. Sectors of interest include B2B services, technology, niche industrial companies, services, distribution, and certain special situations.

Private Equity Professional | August 27, 2020