Swander Pace Capital has made an investment in Inovata Foods, a maker of private label frozen entrées.
Inovata Foods specializes in producing a range of frozen meals, including pasta, rice-based dishes, poultry, Mexican, seafood, Italian, Asian, and vegetarian options. The company’s products are sold to the retail, club store, and foodservice markets in both Canada and the United States.
Inovata operates two production facilities near Toronto in Tillsonburg, Ontario (95,000 sq. ft.), and in Edmonton, Alberta (45,000 sq. ft.) with an additional Culinary Innovation Center in Kelowna, British Columbia. The company was founded in 1989 by Steve and Lisa Parsons as The Pasta Mill, a maker of fresh pasta before transitioning to making frozen entrees in 2007, and today is led by CEO Chad Parsons, the son of the founders.
“We strive every day to deliver superior service to our retail partners. Our employees are dedicated to quality, and we continually invest in the robust capabilities of our manufacturing facilities,” said Chad Parsons. “The partnership with Swander Pace will allow us to accelerate our execution efforts and continue to deliver best-in-class quality.”
Swander Pace is an active investor in the food manufacturing sector in both the Unites States and Canada. The investment in Inovata is the firm’s tenth platform investment in Canada, including prior investments Voortman Cookies (2015 to 2020); Recochem (2014 to 2018), Kicking Horse Coffee (2012 to 2017), Lavo (2008 to 2017), Pineridge Bakery (2007 to 2014), and Liberté Yogurt (2004 to 2010).
Swander’s current portfolio includes Vancouver-based Fine Choice Foods, a manufacturer of Asian-inspired foods, and St-Méthode Bakery, a Quebec-based fresh bread bakery platform.
“Selecting the right partner was crucial for us, and we deliberately chose Swander Pace due to their proven track record and shared values and vision for growth,” said Steve Parsons. “I am incredibly proud of the Inovata Foods team and all we have accomplished since our inception in 1989. I am confident that partnering with Swander Pace will accelerate our capacity expansion plans, enabling us to provide even more quality products to our valued customers.”
“We are truly excited to partner with the Parsons family and the Inovata Foods team, known for their unwavering dedication to quality and customer service,” said Tyler Matlock, a managing director at Swander Pace. “As the demand for premium private label meal solutions continues to grow, we see Inovata as the ideal platform to capitalize on these trends. With extensive experience in private label and food manufacturing throughout North America, we believe we are uniquely positioned to help foster Inovata’s growth and leadership position in the industry.”
Swander Pace invests in middle-market consumer products companies that have revenues of up to $500 million. Sectors of interest include food and beverage, body and wellness, and home and family. Since its founding in 1996, the firm has invested in more than 60 companies and raised more than $2.2 billion in capital. Swander Pace is headquartered in San Francisco with additional offices near New York City in Bedminster, New Jersey, and near Toronto in Mississauga, Ontario.
Ernst & Young Orenda Corporate Finance was the financial advisor to Inovata on this transaction.
© 2024 Private Equity Professional | July 10, 2024
