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Azalea Acquires Muffin Mam

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Azalea Capital has acquired The Muffin Mam, a branded and private label maker of baked goods.

Muffin Mam’s products include crème cakes, muffins, pound cakes, brownies, and angel food cakes that are sold across the US and internationally through retail grocers and food service companies. Muffin Mam is headquartered near Greenville in Simpsonville, SC. The company was originally founded in 1990 by Stephanie Croley as a small café in Greenville and expanded into a wholesale bakery in 1992 (www.muffinmam.com).

Since April 2014, after the death of Ms. Croley, The Muffin Mam has been run by her three daughters and General Manager Greg Marshall. With the closing of this transaction, Dewey Armstrong, a 30-year food industry veteran, has joined Muffin Mam as its new CEO, and Mr. Marshall has been promoted to Executive Vice President.

Mr. Armstrong joins Muffin Mam after leading Spice Chain as its CEO from July 2016 to July 2018. Spice Chain, a portfolio company of Frontenac, is an importer, processor, packager and supplier of ingredients to the foodservice, private label retail and food manufacturing industries. Before Spice Chain, he was the President and COO of Wise Snacks, and previously held leadership positions with Nutro Pet Foods and Frito Lay.

“I am excited to join the Muffin Mam team and to partner with Azalea Capital in building on the strong foundation put in place by Ms. Croley and Mr. Marshall,” said Mr. Armstrong. “Our initial plans are to expand capacity to meet the growing demand for the quality baked goods Muffin Mam is known for in the marketplace.”

“The additional resources and the shared vision for Muffin Mam will allow us to execute our growth plan and better serve our loyal customers with more capacity, new products and greater capabilities,” said Mr. Marshall. “We truly look forward to our new partnership and the opportunity to realize the dreams of Stephanie Croley when she started the business.  We have come far since 1992, but the best is clearly yet to come.”

Azalea Capital invests in middle market companies that have annual revenues of at least $10 million and EBITDAs of up to $8 million.  Industries of interest include aerospace, business services, consumer products, energy services, healthcare, manufacturing, and value-added distribution. Azalea Capital was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).

© 2018 Private Equity Professional | August 1, 2018

Riverside Selling Tate’s to Mondelēz

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The Riverside Company has agreed to sell Tate’s Bake Shop to publicly traded Mondelēz International for approximately $500 million. Riverside acquired Tate’s Bake Shop in September 2014.

Tate’s products – which include cookies, cakes, brownies, and pies – are sold through grocery and specialty food stores, through its web store, and at its retail location and headquarters in Southampton, NY. The company, led by CEO Maura Mottolese, was founded in 1980 (www.tatesbakeshop.com).

According to Mondelēz, Tate’s has been one of the fastest growing biscuit brands in the United States over the last 12 months. “Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, Mondelēz Chairman and Chief Executive Officer. “With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast-growing premium cookie segment. Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with the Tate‘s management team to expand distribution and build upon that success.”

Mondelēz will operate Tate’s as a separate standalone business and the company’s senior leadership will continue to run the business from its headquarters on Long Island, including its Bake Shop located in Southampton.

“Riverside took a great company and made it even better,” said Riverside Managing Partner Loren Schlachet. “Our retail partners had a knack for telling Tate’s exactly what they wanted, and our distributor partners ensured that those needs were met. That’s the essence of great consumer brand investing and it helped make Tate’s a success story.”

During Riverside’s term of ownership, Tate’s expanded and improved production processes, expanded distribution, developed new products, and grew its sales and marketing team. Tate’s revenues and earnings have increased by 4x over the last five years.

“Tate’s had a great foundation for becoming the truly special company it is,” said Riverside Partner Alan Peyrat. “With new products like snack-sized Tiny Tate’s and on-trend flavors like Coconut Crisps and Ginger Zinger, we helped the company respond to marketplace demands. Coupled with a focus on profitability, we kept building on the proven success of existing product lines, making customers and consumers even happier along the way. Working with the Tate’s team was a wonderful experience.”

Working with Mr. Schlachet and Mr. Peyrat on the transaction for Riverside were Operating Partner Tim Spring, Senior Associate Kenneth Johnson, and Finance Director Gary Schlegel.

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 520 transactions and its portfolio includes more than 75 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

Mondelēz International (NASDAQ: MDLZ) is a multinational confectionery, food, and beverage company. It consists of the global snack and food brands of the former Kraft Foods after the October 2012 spin-off of its North American grocery operations. The company has more than $30 billion in annual revenues and has more than 107,000 employees. Mondelēz International is headquartered in the Chicago suburb of Deerfield (www.mondelezinternational.com).

Houlihan Lokey and TM Capital are the financial advisors to The Riverside Company on this transaction. Closing is expected before the end of August 2018.

© 2018 Private Equity Professional | May 7, 2018

The Riverside Company Invests in Tate’s Bake Shop

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tates bake shop nf1The Riverside Company has made an investment in Tate’s Bake Shop, a maker of cookies and other baked goods products.

Tate’s Bake Shop offers a variety of baked goods including cookies, cakes, brownies, and pies. While most of these gourmet treats are sold through grocery and specialty food stores, Tate’s Bake Shop also sells through its web store, as well as its retail location in Southampton, first opened in 1980. Tate’s Bake Shop was founded by Kathleen King in 1980 and is based in Southampton, NY (www.tatesbakeshop.com).

loren schlachet nf1“Tate’s Bake Shop provides exceptional treats that meet rising demand for all-natural and authentic gourmet foods,” said Riverside Managing Partner Loren Schlachet. “They have a loyal and growing base of customers who appreciate their commitment to quality.”

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 350 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

alan peyrat nf1“Under the leadership of Kathleen King, Tate’s Bake Shop has proven to be a nimble and innovative baker that is setting trends in the industry,” said Riverside Partner Alan Peyrat. “They have continued to perfect their all-natural line of cookies while innovating with new flavors and formats, including top-selling gluten-free cookies and bars.”

Working with Mr. Schlachet and Mr. Peyrat on the transaction for Riverside was Associate Elaine Ho. Origination Principal Amy Margolis sourced the deal for Riverside. Riverside Finance Director Kim Katzenberger served as finance director, and Vice President Dan Haynes worked on financing the transaction for the firm.

Riverside plans to help Tate’s Bake Shop accelerate growth by enhancing distribution, production, and manufacturing efficiency as well as supporting sales and marketing.

Golub Capital, Crescent Capital and Triangle Capital provided financing for the transaction.

TM Capital Corp., an investment banking firm with offices in New York, Boston and Atlanta, served as financial advisor to Tate’s Bake Shop in connection with this transaction.

© 2014 PEPD • Private Equity’s Leading News Magazine • 9-2-14

Quad-C Exits Cloverhill Bakery

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cloverhill nfQuad-C Management has sold its portfolio company Cloverhill Bakery, a manufacturer of individually wrapped sweet baked goods, to Switzerland-based global food business ARYZTA AG. Quad-C invested in Cloverhill in 2009.

Cloverhill is a manufacturer of individually wrapped pastries for retail, co-pack, foodservice and vending customers. The company’s product portfolio includes over 30 product formulations and 300 SKUs, including fold-over and round Danish, cinnamon rolls, honey buns, donuts, muffins, crumb cakes, and cream-filled cakes. Cloverhill operates two world-class bakeries in the Chicago metropolitan area. During Quad-C’s investment period, Cloverhill has invested approximately $100 million in growth capital and grown revenue by more than 80%. Cloverhill was founded in 1961 and is headquartered in Chicago (www.cloverhill.com).

winslow nf“Back in 2009, Quad-C saw Cloverhill as an exciting opportunity to invest in a high growth market leader in the packaged foods space, but equally as important, to partner with an aggressive, talented management team willing to reinvest significantly with us as co-owners,” said Frank Winslow, partner, Quad-C Management. “We are thrilled with the outcome of our work together, which resulted in substantial expansion and the creation of long-term value for the company.”

Quad-C is a middle market private equity firm that invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution and transportation/logistics. The firm is currently investing Quad-C VIII, a $700 million fund raised in 2012. Quad-C was founded in 1989 and in its 25-year history has invested over $2 billion of equity across more than 50 companies. The firm is headquartered in Charlottesville, VA (www.quadcmanagement.com).

burns nf“We are very pleased with the success of the Cloverhill investment and feel the partnership we created with management is indicative of our investment approach at Quad-C – one where interests are aligned among our limited partners, ourselves and management and where strategies are set in a collaborative fashion. We wish the team luck and look forward to their continued success,” added Steve Burns, senior partner, Quad-C Management.

The buyer of Cloverhill Bakery, Aryzta, is a global bakery company dually listed on the Swiss and Irish stock exchanges. The company’s range of products includes artisan breads, sweet baked goods, and an array of other items such as pizza, tarts, and pies. Aryzta is headquartered in Zurich, Switzerland with operations across North America, South America, Europe, Southeast Asia, Australia, and New Zealand (www.aryzta.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-26-14

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