AUA Private Equity has acquired Western Smokehouse Partners from Monogram Capital Partners and Charis Consumer Partners.
Western Smokehouse is a contract manufacturer (co-packing, private label, and branded products) of smoked meat snacks for emerging and established brands, as well as large retailers. The company’s beef, turkey, chicken, and pork products are available in sticks, bites, and strips and include organic, non-GMO, plant-based, and free-range options.
The founding of Western Smokehouse Partners dates to 1978 when Sam Western founded Western’s Smokehouse in Greentop, Missouri, and Jim Hankes founded Thrushwood Farms Quality Meats in Galesburg, Illinois. In 2018, Monogram and Charis formed Western Smokehouse Partners to acquire Western’s Smokehouse. In 2019, the company added on with the buy of Thrushwood Farms, and in 2020 added on again with the acquisition of Prairie Sky Snacks, a Springfield, Illinois-based contract manufacturer of meat snacks, from the founding Turasky family.
The company, led by CEO Matt Bormann, is headquartered in Greentop, Missouri, and operates three production facilities in Illinois (2) and Missouri. An additional 100,000-square-foot facility will open in Burlington, Iowa in May 2023.
“Our newly established partnership with Western Smokehouse is an exciting opportunity for AUA and we are grateful to be able to partner with such a great team,” said Andy Unanue, the managing partner of AUA. “Western is a growing food manufacturing business that has maintained a collaborative and entrepreneurial culture established by its founding families decades ago; this represents the core of AUA’s investment ethos. We are eager to continue to build upon the company’s ongoing success.”
AUA is an active investor in the snacking and food sector. Back in October 2022, AUA sold TruFood Manufacturing, a contract manufacturer of snack foods, to Mubadala Capital. During AUA’s three-year ownership term, TruFood created a research and development center, invested in new production capabilities, and closed a complementary add-on acquisition with the buy of Simply Natural Foods, a New York-based co-manufacturer of protein bars.
“This is an exciting opportunity for Western as AUA has a demonstrated history of supporting and scaling contract manufacturing businesses in the snacking and food space broadly,” said Mr. Bormann. “Our new partnership with AUA will enable us to accelerate growth and further develop our capabilities to better serve our customers. We are thrilled to join the AUA family and look forward to leveraging their resources and experience to continue to build upon our success to date and carry on the legacy of the founding Western, Hankes, and Turasky families.”
“We have been highly impressed by the Western Smokehouse team and their success in building a best-in-class business while maintaining a culture rooted in its humble origins,” said David Benyaminy, a partner at AUA. “AUA has a proven history of growing co-manufacturing businesses and supporting management teams with the capital and resources necessary to execute on a shared vision of growth. We look forward to working with management in this next chapter.” The AUA transaction team was led by Mr. Benyaminy, Vice President Brian Krouskos, Senior Associate Nicolas Pflaum, and Associate Trip Ewig.
Harris Williams was the financial advisor to Western Smokehouse with Managing Director Ryan Freeman, Director Brant Wilczek, and Vice President Hilary King as members of its transaction team. “Better-for-you snacking continues to be a sector that garners investor attention,” said Mr. Freeman. “Western Smokehouse, alongside its partner brands, played a critical role in the proliferation of crafted meat snacks and is well-positioned to continue driving and supporting growth in the category. We are excited to watch the company’s continued success under AUA’s ownership.”
AUA Private Equity makes equity investments from $20 million to $75 million in companies with at least $5 million of EBITDA. Sectors of interest include consumer products and services with a focus on family-owned and Hispanic-oriented businesses. AUA is known for using low leverage to acquire companies and focusing on operational improvements rather than financial engineering to create stakeholder value. In May 2021, AUA held a final and oversubscribed closing of AUA Private Equity Fund II LP with total capital commitments of $310 million. AUA was founded in 2011 and is headquartered in West Palm Beach, Florida.
Monogram invests from $5 million to $30 million in companies with revenues of $5 million to $50 million. Sectors of interest include apparel and accessories, beauty and personal care, pet products, consumer healthcare, food and beverage, and restaurants. Monogram was founded in 2014 and is headquartered in Beverly Hills, California.
Charis Consumer Partners is an investor in United States-based companies that have from $2 million to $8 million in EBITDA and are active in the food and beverage, health and nutrition, pet, beauty and personal care, ingredients, and packaging sectors. The firm, led by CEO Ben Rudman, has offices in Denver and Portland.
Grant Thornton and L.E.K. Consulting advised AUA Private Equity on the acquisition of Western Smokehouse.
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