Swander Pace Capital has sold T-Bev, a provider of botanical extracts, to Florida Food Products (FFP), a portfolio company of Ardian and MidOcean Partners.
T-Bev is a manufacturer and distributor of natural and organic caffeine, teas (white, green, oolong, black, and decaffeinated), sweeteners, and other functional botanical extracts that are used in the food, beverages, supplements, cosmetic and pharmaceutical sectors. The company was founded in 2015 by CEO Anson Gu and is headquartered in Eugene, Oregon.
“I could not be prouder of what the entire T-Bev organization has accomplished,” said Mr. Gu. “Our transaction with FFP reflects the hard work and dedication of our entire team. Going forward, FFP’s resources will allow us to enhance our operations, grow into new markets, and introduce innovative solutions for our customers. We’re excited to be part of the FFP growth story, and I look forward to partnering with the entire FFP team.”
“Our ability to partner with and leverage the Swander Pace portfolio was integral for the success of the T-Bev investment,” said Mo Stout, a managing director at Swander Pace.
FFP is an extractor, fermenter, blender and packager of vegetable and fruit-based ingredients used in beverages; processed and cured meats; soups, sauces, and dressings; and pet food. The company, led by CEO Jim Holdreith, was founded in 1954 and is headquartered near Orlando in Eustis, Florida.
The buy of T-Bev is the second add-on acquisition closed by FFP in the past six months and follows the November 2021 buy of Comax Manufacturing, a New York-based provider of more than 1,000 SKUs of natural flavor ingredients.
Ardian acquired a majority equity interest in FFP from MidOcean in September 2021 at an enterprise valuation of $1 billion, with MidOcean maintaining a minority equity interest in the business. MidOcean had acquired FFP in September 2018 from Kainos Capital.
Paris-headquartered Ardian (formerly Axa Private Equity) was founded in 1996 by Dominique Senequier and is one of the largest European-headquartered private equity firms with more than 780 employees and $114 billion of assets under management. Since expanding into the United States in 2019, Ardian’s U.S. buyout team has invested more than $1.2 billion of equity in three platforms.
MidOcean invests in middle-market companies that are active in the business and consumer services sectors. In September 2018, the firm held a final close of its latest fund, MidOcean Partners V LP, at its hard cap of $1.2 billion in limited partner commitments. The new fund was oversubscribed and closed above its original $1 billion target. MidOcean was founded in 2003 and is based in New York City.
Swander Pace invests in middle-market consumer products companies that have revenues of up to $500 million. Sectors of interest include food and beverage, body and wellness, and home and family. The firm was founded in 1996 and has offices in San Francisco, California, and Bedminster, New Jersey.
© 2022 Private Equity Professional | May 19, 2022
