Ronnoco Coffee, a portfolio company of Huron Capital Partners, has acquired the assets of U.S. Roasterie, a private label manufacturer of coffee sold into the office, foodservice and convenience store distribution channels.
The buy of U.S. Roasterie is the fifth add-on acquisition Ronnoco has made since being acquired by Huron in September 2012. Ronnoco previously acquired International Blends, Henderson Coffee, the coffee and tea business of Love Bottling Company, and Biff’s Coffee. These acquisitions have enabled the company to expand its presence throughout Oklahoma, Arkansas, Missouri Iowa and Kansas and into more types of selling locations including convenience stores, restaurants, offices and casinos.
Huron’s strategy for Ronnoco Coffee includes buy-and-build as well as organic growth. Since Huron’s initial investment two years ago Ronnoco’s revenues have increased over 40%. Today, Ronnoco Coffee is a manufacturer and distributer of coffee, tea and related products sold to convenience stores, foodservice outlets and offices throughout the central United States. The company was founded in 1904 and is based in St. Louis (www.ronnoco.com).
“We are thrilled to see Ronnoco continue to expand and execute on the buy and build strategy we envisioned, and we’re confident in the management team’s ability to use this as a runway to drive continued growth of the business,” said John Higgins, Huron Senior Partner.
U.S. Roasterie was founded in 1995 and is based in Des Moines (www.usroasterie.com). “Over the past 20 years, U.S. Roasterie has partnered with hundreds of customers in developing and supporting their private label brands,” said Ronnoco Chief Executive Officer Scott Meader. “The addition of this facility and management team gives Ronnoco another platform through which to pursue alternate channel growth in a large and growing segment of the coffee industry, and will leverage the capabilities, systems, and outstanding customer service of Ronnoco.”
Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include education & training, healthcare, specialty chemicals, specialty packaging, consumer products, home decor, business services, industrial manufacturing, food & beverage, and marketing services. The firm was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. Huron Capital Partners has offices in Detroit and Toronto (www.huroncapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-11-15
