Altamont Capital Partners has acquired Mini Melts USA, a maker of frozen novelty products. Altamont is partnering with Dan Kilcoyne, the CEO and founder of Mini Melts, on this transaction.
Mini Melts is a maker and distributor of beaded ice cream, a frozen dessert that consists of tiny, bead-like ice cream pellets that are created by flash-freezing a 14% butterfat blend of a liquid ice cream mix using liquid nitrogen.
Mini Melts’ products are sold in 2.5, 5, 8, and 12 ounce cup sizes and bulk and are available in more than a dozen flavors including chocolate, strawberry, cotton candy, cookies and cream, and rainbow ice, and are sold through automated kiosks, grab and go freezers, serving carts, and huts all with -40F cryogenic freezers. Mini Melts sells over 30 million cups per year and distributes nationally to over 15,000 locations, including convenience and drug stores, family entertainment centers, zoos, amusement parks, malls, and sports venues.
“Mini Melts’ fully integrated white glove distribution model is a real difference maker. It enables an entirely seamless experience for the company’s channel partners, and a better quality product for consumers,” said Kevin Mason, a managing director at Altamont. “This model is made possible by the world class team supporting the Mini Melts brand, a team that we felt an immediate cultural connection with and that we are honored and thrilled to be partnering with.”
Mini Melts is headquartered in the Philadelphia metropolitan area with a manufacturing facility in Norwich, Connecticut, and 20 distribution centers located across the United States.
According to the company, Mini Melts is one of the fastest-growing ice cream novelties nationwide with sales growing 35% annually with total sales that are estimated to exceed $100 million within the next 18 months. According to IRI Worldwide, Mini Melts is currently the second fastest growing frozen handheld treat in the convenience store channel and was selected as one of Bain & Company’s 2023 Insurgent Brands.
“Mini Melts has established itself as a leader in frozen novelties,” said Kabir Mundkur, a principal at Altamont. “The brand’s products are some of the highest selling single-serve products in on-the-go locations today and we believe the beaded ice cream category has expandable growth potential. We are excited to invest in the brand and bring Mini Melts into more consumers’ hands while fostering new and exciting innovation in the future.”
Post closing, Altamont and Mini Melts will be active supporting the expansion of the company’s distribution footprint and manufacturing capabilities.
“Our partnership with Altamont will bolster our growth plans, allowing us to spread into new markets and grow with new customers,” said Mr. Kilcoyne. “We have experienced exponential growth over the past several years and are focused on reaching across the entire country and innovating for our valued customers. We are excited to leverage Altamont’s experience scaling family-owned businesses and in multi-unit operations, food manufacturing, and distribution to support our next phase of growth.”
Capital Southwest and Main Street Capital provided financing to support Altamont’s investment in Mini Melts, and Raymond James was the financial advisor to Mini Melts.
Altamont invests equity of $15 million to $150 million in companies that have up to $100 million of EBITDA. Sectors of interest include business services, healthcare, consumer and retail, industrials, and financial services. The firm was formed in 2010 by Randall Eason, Jesse Rogers, and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company. Today, the firm has $4 billion of capital under management and is based in Palo Alto, California, with an additional office in Austin, Texas.
© 2024 Private Equity Professional | January 11, 2024
