Peak Rock Capital has completed the buy of California Custom Fruits & Flavors in partnership with the company’s management team and founding Hall family who remain investors in the company.
California Custom Fruits and Flavors (CCFF) creates and supplies processed fruits and flavors to various segments of the food industry, including cultured yogurt and ice cream manufacturers, industrial bakeries, beverage manufacturers, and restaurant, dessert, and coffee chains.
Specific products include strawberry, blueberry, raspberry, and blackberry fruit bases for yogurts; pie and cereal bar fillings, cookie and danish toppings, and fillings for toaster pastries; flavors for sodas, sports drinks, distilled and brewed spirits, flavored milk, and energy drinks; chocolate, caramel, hazelnut, and vanilla syrups for coffee shops; and apple-cinnamon, blueberry, raspberry, and mixed berry oatmeal toppings. CCFF’s products are made available in an array of packaging sizes including 5 gallon bag-in-box, 55 gallon drums, and 200 gallon reusable stainless steel tote bins.
“We have been actively searching for a specialty ingredient and flavorings platform, and CCFF represents a compelling opportunity to invest in a leading innovation partner with relationships across blue-chip and high-growth brands, retailers, and co-manufacturers,” said Michael Graham, a managing director at Peak Rock. “CCFF’s relationships, which often span more than 20 years, reflect the company’s commitment to superior product quality and customer service. We look forward to partnering with CCFF to accelerate its growth trajectory, with a focus on expanding the company’s capabilities and capacity through organic investments and complementary acquisitions.”
CCFF, led by CEO Mike Mulhausen, was founded in 1986 by Terry and Rose Ann Hall and is headquartered near Los Angeles in Irwindale, California (85,000 sq. ft.) and operates a second facility, opened in 2020, near Indianapolis in Greenwood, Indiana (65,000 sq. ft.).
“CCFF has demonstrated the consistent, long-term growth profile that we look for in our platform investments,” added Robert Strauss, senior managing director at Peak Rock. “We are thrilled to partner with CCFF, and we are deeply impressed by the strong culture of innovation and history of performance that the Hall family built.”
Austin-based Peak Rock makes debt and equity investments of $30 million to $500 million in middle-market companies with enterprise values from $50 million to $1.5 billion. Sectors of interest include business and technology-enabled services; consumer products and services; distribution and logistics; energy; food and beverage; healthcare; and industrial manufacturing and technology.
“This transaction further exemplifies Peak Rock’s deep experience investing in founder and family-owned businesses and highlights our longstanding interest in attractive investments in the food and beverage sector,” said Anthony DiSimone, chief executive officer of Peak Rock. “We continue to seek consumer-oriented platforms and acquisitions that could benefit from our ability to support rapid growth and expansion.”
Peak Rock is actively seeking add-on acquisitions for CCFF.
© 2024 Private Equity Professional | March 14, 2024
