Kainos has sold good2grow (G2G), a branded and child-focused beverage company that sells clean label and ready-to-drink beverages, to Wind Point Partners.
G2G’s products include fruit juice, fortified water and organic flavored milk that feature three-dimensional character tops – collectible, reusable, and dishwasher-safe – through licenses with Disney, Universal, Hasbro, Nickelodeon, Warner Bros and other companies. G2G’s products are sold primarily in single-serve bottles through the convenience, grocery, and mass channels.
Atlanta-headquartered G2G, led by CEO Gunnar Olson, was founded in 1997 by Jim Scott. Kainos invested in the company in 2018 through its second fund.
“We chose to partner with the Kainos team in 2018 with the belief that their sector knowledge and network of relationships – in particular in the c-store channel – would be invaluable, and this proved to be true,” said Mr. Olson. “They are a great team to work with, and they execute with speed and certainty.”
“G2G is a great example of the transformational growth that Kainos seeks in each investment,” said Andrew Rosen, the managing partner at Kainos. “Early on, we identified better-for-you and convenience as attractive investment themes in our sector, and we were drawn to G2G’s unique product offering that provides entertaining beverages that meet kids’ nutritional needs. In just three years, despite the COVID-19 pandemic environment, the G2G management team executed brilliantly on our Change Capital plan to nearly double revenue through expanded distribution, increased sales velocity and new product development.” Note: the Kainos Change Capital program develops operating strategies for its portfolio companies that actively target increases in sales and profitability.
“By accelerating G2G’s direct store distribution to nearly full national coverage, we significantly increased in-store display support for our retail partners,” said Bob Sperry, a partner at Kainos. “Additionally, we strategically expanded the brand from juice to fortified water and organic flavored milk during our ownership, providing more beverage options that kids love and parents feel good serving.”
Dallas-headquartered Kainos invests from $50 million to $200 million of equity in North American food and consumer products companies that have EBITDA from $10 million to $80 million. In November 2016, Kainos held a hard cap close of Kainos Capital Partners II LP with capital commitments of $895 million.
“G2G has a world-class leadership team capable of managing a much larger enterprise and we are excited for the company’s next phase of growth under its new ownership,” concluded Mr. Rosen.
“We look forward to working with the G2G team to further grow the brand and execute on our value creation plan,” said David Stott, a managing director at Wind Point. “We have known Gunnar and his team for several years, and they have built an outstanding business model that delivers an enduring value proposition, resulting in strong long-term relationships with customers, distribution partners, and licensors. G2G is a fast-growing brand with a truly unique concept within the children’s food and beverage market.”
Chicago-based Wind Point invests from $50 million to $100 million in companies with EBITDA of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point is currently investing out of Wind Point Partners IX LP which closed in February 2021 with $1.5 billion of capital. Fund IX is the largest fund ever raised by Wind Point.
Robert W. Baird and Credit Suisse were the financial advisors to G2G on this transaction.
© 2021 Private Equity Professional | December 9, 2021
