L2 Capital has acquired Kosmos Q, a branded seller of barbecue related food products and accessories.
Kosmos Q’s branded products include barbecue rubs and sauces, brines and injections, glazes, and accessories such as knives, gloves, injectors, sprayers, and brushes.
The company’s products are sold through the direct-to-consumer (D2C) channel to barbeque connoisseurs, hobbyists, and home cooks; and through select national retail and grocery chains including Wal-Mart, Ace Hardware, Buc-ee’s, Scheels, and Bass Pro Shops/Cabela’s.
Kosmos Q maintains an active social media presence and has had more than 27 million views on its YouTube channel and over 800,000 followers across all its social media channels.
The Kosmos Q brand was founded in 2009 by world champion pitmaster Darian ‘Kosmo’ Khosravi and is headquartered in Oklahoma City, Oklahoma.
“We are excited to partner with a highly regarded and respected founder like Darian Khosravi. His company enhances the barbeque experience for his customers through a highly differentiated approach towards product innovation and customer engagement,” said Connor McMahan, a partner at L2 Capital. “With the addition of Scott in the lead role, we look forward to helping extend Kosmos Q’s reach and scope going forward.”
In tandem with its buy of Kosmos Q, L2 Capital has announced that Scott Jensen has been hired as the company’s new chief executive officer. In 2009, Mr. Jensen co-founded Rhythm Superfoods, a maker of kale chips and other plant-based snacks. Earlier in his career he was the CEO of One World Foods (DBA Stubb’s Bar-B-Q) which he co-founded in 1990 in partnership with C.B. Stubblefield. One World Foods was sold in 2015 to spice, seasoning, and condiment maker McCormick & Company.
“I am thrilled to take the reins of such an authentic and premium brand in a space that I am passionate about,” said Mr. Jensen. “Having already demonstrated an ability to grow in this space, I am confident that we can bring Kosmos Q products to enthusiasts everywhere.”
Also joining Kosmos Q as its new vice president of sales is Terry Meyer who worked with Mr. Jensen at Rhythm Superfoods as its vice president of sales from 2015 to 2024.
“L2 Capital is a terrific partner for Kosmos Q due to their in-house operational and e-commerce expertise, and I am thrilled to welcome Scott to the team,” said Mr. Khosravi. “I am confident that I have found the right partners who reflect our company’s values and commitment to providing the highest quality products and services to our customers.”
L2 Capital invests in North America-based business services and consumer products companies with revenues of $10 million to $125 million, EBITDA of $2 million to $20 million, and valuations of up to $150 million. The firm was founded in 2011 and is headquartered near Philadelphia in Devon, Pennsylvania.
Generational Equity was the financial advisor to Kosmos Q on this transaction. Leading the Generational Equity transaction team was Managing Director Michael Goss along with Vice President Lance Thomasson and Managing Director Suzanne Harp.
“Darian and L2 Capital had an immediate rapport and vision to partner together and accelerate Kosmos Q’s expansion to more retail shelves, and to continue to drive expansionary D2C growth via additional digital marketing campaign strategies, and together they will share a tremendous amount of success going forward,” said Mr. Goss.
Oxer Capital Partners and Salem Investment Partners provided debt financing and co-invested in this transaction.
© 2024 Private Equity Professional | May 14, 2024
