New Heritage Capital has sold Revela Foods to Archer Daniels Midland.
Revela Foods is a provider of dairy flavorings, cheese sauces, seasonings and functional cheese used in a range of food applications from snacks and frozen meals to sauces, dressings, soups, seasonings and desserts.
New Heritage acquired family-owned Welcome Dairy in July 2019 and added on in July 2021 with the buy of North Star Processing, a provider of spray drying services used in the food ingredient industry. The company rebranded as Revela Foods in July 2022.
Today, Revela has more than 400 employees and operates through three divisions – Welcome Dairy, Gamay Food Ingredients, and North Star Processing – with annual revenues of nearly $240 million. The company has three production facilities in the Midwest with headquarters near Milwaukee in New Berlin, Wisconsin.
“Over the last few years, we have expanded our management team, added new product capabilities, launched a comprehensive go-to-market strategy including a new brand, and completed a significant acquisition, resulting in significant growth,” said Terry Schneider, the CEO of Revela. “Heritage was by our side on all of that journey, helping us to transform our company while preserving our history. We are proud of what we have accomplished together.”
“This has been an incredible journey, transforming Revela from a highly regarded, founder-owned dairy ingredients business into an innovative flavor solutions business playing an integral role in innovation and development for its customers,” said Melissa Barry, a partner at Heritage. “This is what Heritage does best – partnering with strong businesses like Revela to help them unlock their full potential.”
Boston-based New Heritage invests from $15 million to $40 million of minority or majority equity in companies with $4 million to $20 million of EBITDA. Sectors of interest include business services, healthcare, and manufacturing. In December 2023, New Heritage held an above target and oversubscribed closing of its fourth fund, New Heritage Capital IV LP, with $438 million in capital.
Chicago-headquartered Archer Daniels Midland was founded in 1902 and is active in food processing and agricultural services with core capabilities in sourcing, transporting, and processing of agricultural commodities, notably grains and oilseeds.
Houlihan Lokey and Lincoln International were the financial advisers to Revela and Heritage on this transaction.
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