ICV Partners has formed Desi Fresh Foods to acquire the Desi Natural and Noga brands and related assets from Raymundo’s Food Group, a portfolio company of AUA Private Equity Partners.
Desi Fresh Foods is headquartered on Long Island in Farmingdale, New York, where it operates its primary plant that produces dahi, or South Asian yogurt, and lassi, a drinkable south Asian yogurt.
Dahi is made by fermenting milk with lactic acid bacteria. The product is consumed in various forms, such as plain, sweetened, or flavored with fruit, honey, or spices. It is commonly used in cooking and is an essential ingredient in many dishes, particularly in South Asian and Middle Eastern cuisines. According to the company, its Desi Natural brand is the leading brand of dahi in the United States.
Lassi is a blend of yogurt, water, and spices or fruit, which is traditionally served chilled in a tall glass or clay mug. Lassi can be sweet or savory and is often flavored with cardamom, rose water, mango, or other fruits or herbs.
Post-closing, Desi Fresh Foods will be led by CEO Larry LaPorta who has run the business since 2018 as its general manager. Earlier in his career, Mr. LaPorta was an executive in marketing and operating roles at Beiersdorf, Revlon, and Kraft Foods.
“My team and I are thrilled with the growth opportunities that are in front of us at Desi Fresh Foods. We have plans to increase our distribution and new product offerings to meet the changing needs of our consumers,” said Mr. LaPorta. “Further, we will also invest to meet the growing demand for our fantastic brands. Ultimately, we want to create the leading refrigerated South Asian food company in the US.”
“ICV is excited to create a new company that is a leader in its category,” said Qian Elmore, a managing director at ICV. “Desi Fresh Foods’ growth has outpaced the growth of the South Asian population and appeals to the broadening American consumer’s palate. We think there is considerable opportunity to bring Desi Fresh Foods products to more grocers in America.”
ICV invests in private equity and family-owned businesses, corporate divestitures, and management buyouts that have revenues from $25 million to $300 million and EBITDA from $10 million to $40 million. Sectors of interest include business services, consumer goods and services, food and beverage, and healthcare. ICV was founded in 1998 and has offices in New York and Atlanta.
“Our investment in Desi Fresh Foods is the result of our intentional pursuit of niche food companies that produce key ingredients for consumers and foodservice,” said Willie Woods, the president of ICV. “The American consumer has become more adventurous and looks for authentic ethnic foods and diverse flavor profiles. We are always looking to invest in companies that address that demand.”
Financing for the acquisition of Desi Fresh Foods was provided by M&T Bank. Lazard was the financial advisor to Raymundo’s Food Group.
© 2023 Private Equity Professional | February 23, 2023
