Mill City Capital has completed the acquisition of JMH International, a developer and manufacturer of soup bases and other food related products.
Co-investing with Mill City in the transaction were Northstar Capital (www.northstarcapital.com) and Babson Capital (www.BabsonCapital.com) as well as JMH’s former CEO, Kirk Mellecker. Senior financing was provided by Fifth Third Bank.
JMH International develops and manufactures a range of soup bases, sweet and savory flavor bases, stock concentrates, sauces, gravy mixes, dessert preparations, seasoning blends, powdered drink mixes, and dry complete meals. The company provides custom formulations to its customers in the foodservice, ingredient, specialty retail, and co-manufacturing channels. JMH International is based in Salt Lake City (www.jmhpremium.com).
“JMH is a market leader in providing a broad range of flavor systems and custom, culinary driven solutions to the food industry” said Darren Acheson, a Managing Director at Mill City Capital. “JMH has an outstanding management team and is a strong business with significant growth potential. This acquisition represents the fifth platform investment in our current fund and the second in the food industry. We look forward to growing JMH together with our investment partners and the management team.”
JMH’s existing management team will continue under Mill City Capital’s ownership. “My management team and I are very pleased that Mill City Capital, Northstar and Babson invested in JMH,” said Kevin Kowalski, JMH’s President. “This investor group has a reputation for being a value added partner in the food industry and we view this next chapter in JMH’s history as an exciting opportunity for our company and employees.”
Mill City makes control investments in industrial and consumer businesses which have EBITDAs of $7.5 million to $25 million and are located in the five Upper Midwestern states of Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. The firm is based in Minneapolis (millcitycapital.com).
“JMH is a terrific company with a bright future” said Kirk Mellecker, who purchased the company in 1997. “I’m thrilled to have the opportunity to stay involved and assist in the future growth of JMH.”
William Blair & Company served as JMH’s exclusive financial advisor.
© 2012 PEPD • Private Equity’s Leading News Magazine • 12-13-12