Peak Rock Capital has closed the sale of TNT Crust, a manufacturer and distributor of pizza crusts, to publicly traded General Mills.
TNT is a provider of partially baked, self-rising, and better-for-you (gluten-free, vegetable-based) pizza crusts that are sold to foodservice distributors, national pizza chains, and retail brands. TNT, led by CEO Kyle Heberle, was founded in 1981 and is headquartered near St. Louis in St. Charles, Missouri.
Peak Rock acquired TNT from Tyson Foods (NYSE: TSN) in September 2018 as part of Tyson’s strategy to focus its business on its core protein operations. During its ownership of TNT, Peak Rock increased the capacity of TNT’s Green Bay, Wisconsin facilities, opened a new production facility in St. Charles, and expanded TNT’s product offerings with the launch of its “better-for-you” product line. Over the past four years, TNT has generated double-digit compound annual net sales growth taking its annual revenues to more than $100 million.
“We are very proud of the success that TNT has achieved under our ownership,” said Robert Pistilli, a managing director of Peak Rock. “The company has undergone transformational growth including the opening of a new manufacturing facility, which is expected to create more than 100 new jobs and the development of an industry-leading better-for-you plant within a plant. We look forward to seeing the company’s continued success under General Mills.”
“Working with the TNT team has been an incredible experience,” said Jordan Campbell, a managing director at Peak Rock. “The company has excelled through a dynamic market environment during the last few years and built a strong foundation to capitalize on the strong growth in the pizza sector.”
“This transaction is another example of Peak Rock’s ability to support and drive rapid transformational growth in the consumer sector,” said Anthony DiSimone, the chief executive officer of Peak Rock. “We will continue to look for opportunities to partner with well-positioned businesses and corporate carve-out transactions that can benefit from Peak Rock’s investment in strategic and operational enhancement initiatives.”
Austin-based Peak Rock makes debt and equity investments of $30 million to $300 million in middle-market companies with revenues from $50 million to $1 billion and enterprise values from $50 million to $750 million. Sectors of interest include business and technology-enabled services; consumer products and services; distribution and logistics; energy; food and beverage; healthcare; industrial manufacturing; metals; and technology.
“Peak Rock has played a critical role in supporting the company’s ambitious growth plans through investments in the company’s people, innovation capabilities, and production capacity,” said Mr. Heberle. “I would also like to recognize the tireless work and dedication of our talented staff in supporting our valued customer base with excellent products and service. We are excited to join the General Mills team and look forward to further accelerating our growth in the years to come.”
General Mills (NYSE: GIS) is a multinational manufacturer and marketer of branded consumer foods sold through retail stores. Company-owned brands include Gold Medal flour, Betty Crocker, Yoplait, Nature Valley, Pillsbury, Old El Paso, Häagen-Dazs, Cheerios, Lucky Charms, Cocoa Puffs and Count Chocula. General Mills had revenues of more than $18 billion in 2021 and is headquartered in the Minneapolis suburb of Golden Valley, Minnesota.
Evercore and Goldman Sachs were the financial advisors to TNT on this transaction.
© 2022 Private Equity Professional | June 29, 2022
