TruFood Manufacturing, a contract manufacturer of snack foods and a portfolio company of Mubadala Capital, has completed its merger with Bar Bakers. Mana Tree Partners co-invested in this transaction alongside Mubadala Capital.
TruFood is a contract manufacturer of branded and private-label nutrition bars, protein bars, chocolate molded products, and baked goods that are sold at club, grocery, drug, convenience, and department stores.
TruFood’s service capabilities include new concept ideation and formulation, commercialization, manufacturing, and supply chain management. Customers of TruFood include consumer packaged goods companies and retailers.
TruFood was founded in 1985 as the Penhurst Candy Company and is today led by CEO Michael Buick. The company has a total of 400,000 sq. ft. of manufacturing facilities and is headquartered in Pittsburgh. Mubadala Capital acquired TruFood in October 2022 from AUA Private Equity.
Bar Bakers is a contract manufacturer of branded nutrition and protein bars, baked bars and cookies, and wafer bars. These products are sold throughout the United States and Canada through the club, grocery, drug, and convenience store channels.
Bar Bakers is headquartered near Los Angeles in Los Alamitos, California and has more than 1,000 employees located across four manufacturing sites and two warehouses in California.
TruFood CEO Michael Buick will manage the combined company, while Bar Bakers founder and CEO Harold Rothman will join the board of directors for the new company. Gary Jacobs, president of Bar Bakers, will become COO of the new company.
“The coming together of TruFood and Bar Bakers marks a significant milestone as it strengthens our position in the nutritional snacks market,” said Mr. Buick. “As a result, we have expanded our capabilities and portfolio of products and strategically extended our manufacturing footprint to the west coast. The combined company’s expertise and resources will enable us to better serve our customers and to accelerate our growth opportunities.”
“Together with Mubadala Capital, Manna Tree and TruFood, Bar Bakers will have greater resources and new capabilities to support the continued growth of our valued customers,” said Mr. Rothman. “On behalf of everyone at Bar Bakers, we look forward to coming together with the TruFood team and are confident that, together, the combined company will be best positioned to address the evolving needs of our customers and drive continued success for them, for our employees, partners and all our stakeholders. I look forward to supporting the company and advising the management team from my board position.”
“We see significant value in bringing together TruFood and Bar Bakers to create a single company that has the capabilities and expertise to lead this industry in the years ahead,” said Adnan Azam, an executive director at Mubadala Capital. “This transaction reinforces our strong commitment to TruFood and Bar Bakers’ growth strategy as we add network capacity, broaden our production capacity, and expand our position in high growth categories. We are excited to welcome the Bar Bakers team and employees to the Mubadala Capital family as we continue to build a market leader in nutrition snacks.”
Mubadala Capital is an active investor with a specific interest in the consumer and food services sectors. The firm has more than $20 billion in assets under management including four flagship private equity funds, three early-stage venture funds, two funds in Brazil focused on special opportunities, an evergreen investment strategy focused on private market opportunities, as well as a series of co-investment and special purpose vehicles, and continuation funds. Mubadala Capital is a subsidiary of Abu Dhabi-headquartered Mubadala Investment Company, a $280 billion sovereign investor. The firm has offices in New York, San Francisco, London, Rio de Janeiro, and Abu Dhabi.
“The better-for-you bar market is large and growing and TruFood and Bar Bakers’ innovative product portfolio and unwavering commitment to nutrition and quality make them the leader in manufacturing for the bar category’s largest health-forward brands,” said Steve Young, a managing partner at Manna Tree. “As consumer preferences continue evolving towards healthier, more protein rich options, we believe the combination of TruFood and Bar Bakers is exceptionally well-positioned to capitalize on these favorable market trends.”
Manna Tree invests in North America-based food and nutrition companies with revenue of at least $50 million. The firm has a specific interest in companies that are engaged in production and processing, logistics and distribution, consumer products, and personal nutrition. Mana Tree was founded in 2018 by Ellie Rubenstein and Ross Inverson and is headquartered in Vail, Colorado.
Houlihan Lokey was the financial advisor to Bar Bakers on this transaction.
