San Francisco Equity Partners (SFEP) has sold Red Monkey Foods to Norwest Equity Partners. SFEP acquired Red Monkey in January 2017.
Red Monkey is a supplier of natural and organic, branded and store-branded spices, seasonings, salts and bath salts that are sold through the grocery, mass, specialty and e-commerce channels. The company is certified USDA organic and produces its products in an SQF (Safe Quality Food Institute) level III facility located in Springfield, Missouri.
In December 2017, Red Monkey acquired San Francisco Salt Company, a California-based provider of specialty sea salts including Himalayan salt, Epsom salt and Dead Sea salt products sold in both retail and bulk sizes under company-owned brand names including San Francisco Salt, Sherpa Pink, Minera, and Epsoak.
Red Monkey Foods was founded in 2002 and is led by CEO Scott Bolonda, a former senior executive at spice giant McCormick & Co., who joined Red Monkey as its CEO in May 2017.
“SFEP has been a great partner to the Red Monkey management team over the last four years,” said Mr. Bolonda. “Their experience building scalable businesses in the consumer space proved invaluable as we successfully executed on our strategy of becoming the premier supplier of premium organic flavor solutions. Our team greatly valued SFEP’s operational approach to partnership. We look forward to capitalizing on the tremendous momentum in the business with our new partners at Norwest Equity.”
Norwest Equity (NEP) makes equity investments of $30 million to $250 million in companies that have more than $10 million in EBITDA. Sectors of interest include agriculture, business services, consumer, distribution, industrials, energy, and healthcare. The firm is currently investing Norwest Equity Partners X LP, a $1.6 billion fund that closed in April 2015. NEP was founded in 1961 and is headquartered in Minneapolis with an additional office in Palm Beach.
“We have thoroughly enjoyed working with the talented team at Red Monkey as they have built an outstanding business,” said David Mannix, an SFEP Partner. “Over the course of our partnership, the company more than tripled revenue and EBITDA, completed a synergistic acquisition and significantly expanded its supply chain and manufacturing capabilities. Red Monkey is well-positioned for continued growth and we wish the management team and Norwest Equity success in their new partnership.”
San Francisco-headquartered San Francisco Equity Partners makes control and minority investments of $5 million to $25 million in consumer companies that have revenue of up to $100 million and EBITDA of up to $10 million. Consumer sectors of specific interest include apparel; beauty and personal care; food and beverage; health and wellness; household products; outdoor and recreation; pet care; and specialty retail.
Stifel was the financial advisor to Red Monkey on this transaction.
© 2020 Private Equity Professional | December 11, 2020
