Shearer’s Foods, a portfolio company of Wind Point Partners and Ontario Teachers’ Pension Plan (Teachers’), has signed an agreement to acquire Lance Private Brands, a private label manufacturer of cookies, crackers and wafers, from Snyder’s-Lance (NASDAQ:LNCE). The transaction is expected to close in the second quarter of 2014.
Lance Private Brands is a private label manufacturer of cookies, crackers and wafers and operates as a division of Snyder’s-Lance (NASDAQ:LNCE). Lance Private Brands is based in Burlington, IA (www.lanceprivatebrands.com).
Wind Point and Teachers’ acquired Shearer’s in October 2012 in partnership with CJ Fraleigh, who joined as Chairman and CEO. Mr. Fraleigh, who most recently served as CEO of Sara Lee – North America, has 25 years of experience in consumer products. Lance Private Brands will be Shearer’s second add-on acquisition. Shearer’s acquired Medallion Foods, a manufacturer of tortilla chips, corn chips and cheese snacks, in April 2014.
“Lance Private Brands is a transformative acquisition for Shearer’s, significantly expanding our product offerings,” said Mr. Fraleigh. “With this acquisition, Shearer’s is well-positioned to capitalize on the growth of contract manufacturing and private label brands with new product capabilities in cookies and crackers, in addition to our existing salty snack products.”
Shearer’s is the largest producer of private label salty snacks in North America and the largest producer of kettle cooked potato chips in the world. Shearer’s produces a range of salty snack products including kettle cooked potato chips, traditional potato chips, tortilla chips, rice crisps, cheese curls and other extruded snacks, and whole grain chips. Shearer’s manufactures both branded and private label snacks for retailers and contract manufactures for some of the nation’s largest branded snack food companies. Shearer’s operates six manufacturing facilities in Ohio, Texas, Arkansas, Oregon and Virginia and is headquartered south of Cleveland in Massillon, OH (www.shearers.com).
Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.5 billion in capital under management and has completed more than 90 investments and 162 add-on acquisitions across its seven private equity funds. Wind Point Partners was founded in 1984 and is based in Chicago (www.windpointpartners.com).
“Lance Private Brands is an exciting opportunity for Shearer’s. Acquisitions like Lance are a strategic element of our value creation plan for Shearer’s. CJ has an excellent track record of integrating and growing add-on acquisitions, and we’re excited about the growth potential of the combined businesses,” said Mark Burgett, a managing director at Wind Point.
Teachers’ Private Capital is one of the world’s largest private equity investors, having participated as a long-term investor in numerous management buyouts in Canada, the United States and Europe. It is the private investment division of the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada. Teachers’ Private Capital is based in Toronto with offices in New York and London (www.teachersprivatecapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-7-14
