Thomas H. Lee Partners and Goldman, Sachs & Co. have signed an agreement to acquire CTI Foods, a provider of pre-cooked meat, soups and dressings to chain restaurants, from Littlejohn & Co. Morgan Stanley and Goldman Sachs have provided commitments for the debt financing for the transaction.
“We at CTI Foods are excited to announce this partnership with THL and Goldman Sachs. In the past years, CTI has steadily expanded through organic growth, targeted and strategic acquisitions, and a commitment to R&D and innovation. The company has a compelling growth path and a well-defined offering of value-added food products. As we look to the next phase of our growth, we couldn’t be more pleased to be partnering with THL and Goldman Sachs, investors who share our commitment to our customers, and bring exceptional financial and industry expertise that will help propel us to the next level,” said Robert (“Bobby”) Horowitz, Chief Executive Officer of CTI.
CTI is a provider of custom food products including proteins, soups and dressings to quick service and casual dining chain restaurants in North America. The company’s principal products include pre-cooked taco meat, steak and chicken fajita meat, soups and sauces, hamburger patties and dehydrated pinto beans. CTI has annual revenues of approximately $500 million. The company operates seven food processing facilities located in Idaho, California, Kentucky, Pennsylvania and Texas and has corporate offices in Fort Worth, TX and Wilder, ID (www.ctifoods.com).
Littlejohn & Co. makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm is currently investing from Littlejohn Fund IV which has over $1.3 billion in capital commitments. Littlejohn & Co. is based in Greenwich, CT (www.littlejohnllc.com).
Thomas H. Lee Partners, founded in 1974, is one of the oldest private equity investment firms in the United States. Industries of interest include consumer & healthcare, media & information services and business & financial services. Since its founding, Thomas H. Lee Partners has raised approximately $20 billion of equity capital and invested in more than 100 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).
“Bobby and the team at CTI Foods have created an outstanding company with a well-deserved reputation for quality, innovation, and customer service. CTI has demonstrated a track record of robust growth and has consistently developed strong partnerships with its customers. We are extremely pleased to have the opportunity to invest in the company and partner with its first class management team and employees,” said Jeff Swenson, Managing Director at THL.
Goldman Sachs is a global investment banking, securities and investment management firm that provides a range of financial services to corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world (www.gs.com).
Goldman Sachs acted as financial advisor and Weil, Gotshal & Manges acted as legal advisor to THL and Goldman Sachs. Morgan Stanley acted as financial advisor and Gibson, Dunn & Crutcher acted as legal advisor to Littlejohn and CTI.
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-9-13
