bakery products

Arbor Continues Bakery Build Up

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The Bakery Companies, a portfolio company of Arbor Investments, has acquired the Smyrna, Georgia facility of Specialty Bakers.

The Bakery Companies (TBC) manufactures fresh and frozen breads, baked goods and dough products for foodservice, food manufacturing and retail customers in both the United States and the Caribbean. The company operates sixteen baking lines at six facilities, with more than 500 employees, and produces over six million baked goods daily including buns, English muffins, rolls, biscuits, frozen dough, artisan breads, and pastries.

TBC was founded in 1996 by Cordia and Tom Harrington and is headquartered in Nashville. Arbor acquired TBC in partnership with CEO Cordia Harrington in September 2019.

The acquired Smyrna facility is located less than 20 miles from TBC’s existing operations in Norcross, Georgia (acquired by TBC in 2016 through the buy of Masada Bakery) and produces and distributes laminated dough items including croissants and Danish, as well as sweet baked goods – brownie bites and tea cakes – for in-store bakeries at grocery retailers.

“We are thrilled to be welcoming the team of associates in Smyrna to our Bakery Companies family,” said Ms. Harrington. “Their product and customer portfolio complements our existing business and will enable us to offer a broader range of unique, high-quality baked goods across both sweet and savory categories.  Bringing differentiated products that meet both the changing tastes of consumers and the evolving needs of our customers is critical, and Smyrna addresses both.”

Specialty Bakers, a producer of Ladyfingers and other baked goods, is headquartered in Marysville, Pennsylvania and has been a portfolio company of White Plains-based Stonebridge Partners since 2010.

“Smyrna adds a sixth facility to our platform, brings exciting new manufacturing capabilities and is a highly attractive fit in terms of geographic location and proximity,” said Chris Tuffin, a partner at Arbor. “This is our second acquisition for TBC in just two months, we are exceptionally pleased to further grow and will continue to seek opportunities to add complementary businesses to our expanding group of passionate bakers.”

In March 2020, TBC acquired Steck Wholesale Foods, a South Dakota-based baker and distributor of English muffins and buttermilk biscuits to foodservice, self-distributing retailers, and wholesale distributors nationwide.

Arbor invests in the food, beverage, and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999, the firm has acquired or invested in over 80 North America-based food, beverage, and related companies. In July 2016, Arbor closed its fourth equity fund, Arbor Investments IV LP, with $765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital. Arbor is headquartered in Chicago with an additional office in New York.

Private Equity Professional | May 22, 2020

Brynwood Adds Brands to Hometown Food

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Hometown Food Company, a portfolio company of Brynwood Partners, has acquired the Arrowhead Mills and SunSpire brands from The Hain Celestial Group for $15 million.

Arrowhead Mills competes primarily in the organic baking and breakfast categories and its product portfolio includes baking and dessert mixes; beans, grains, and seeds; cold and hot cereals; flours; and pancakes and waffle mixes. The brand was founded in 1960 in Texas by Frank Ford, a pioneer in organic farming, and acquired by Hain Celestial in 1999.

SunSpire is a producer of baking chocolate and chocolate candy. The brand’s baking chips and chocolate bars include fair trade, organic and alternative products that are free of refined sugars, hydrogenated oils, trans-fats, preservatives and artificial flavors. The brand was founded in 1979 by Janet Jennings, a fourth-generation chocolatier. SunSpire was acquired in 1999 by nSpired Natural Foods which in turn was acquired by Hain Celestial in 2008.

The buy of the Arrowhead Mills and SunSpire brands includes a manufacturing facility located near Amarillo in Hereford, TX.

“We are delighted to announce the acquisition of the Arrowhead Mills and SunSpire brands into Hometown Foods,” said Henk Hartong, chairman and CEO of Brynwood Partners. “Arrowhead Mills and SunSpire were pioneers in the organic, non-GMO ingredients space and we are excited to add these tremendous brands to our portfolio. This acquisition strengthens our industry position by adding improved capabilities in the better-for-you space that we plan to extend into our other categories.”

Brynwood formed Chicago-based Hometown Food in June 2018 to acquire a portfolio of food brands, with total annual revenues estimated at $200 million, from The J.M. Smucker Company for approximately $375 million. This transaction included the acquisition of a 650,000-square-foot manufacturing facility in Toledo, OH with 255 full-time employees.

The acquired Smucker’ brands included the exclusive US rights to Pillsbury’s shelf-stable baking products, including Funfetti, along with the Hungry Jack, White Lily, Jim Dandy and Martha White brands.

Funfetti and Hungry Jack are leading national brands in the shelf-stable baking and breakfast categories and White Lily, Jim Dandy and Martha White are regional brands known for flour, cornmeal and grits. Brynwood owns Hometown Food through investments from both its seventh and eight funds.

The Hain Celestial Group (NASDAQ: HAIN) is a provider of foods and personal care products including herbal teas, whole-grain foods, and protein products. The company was founded in 1993 and is headquartered on Long Island in Lake Success, NY (www.hain-celestial.com). Hain Celestial has been an active seller in 2019 as it looks to improve profitability by divesting some of its lower-margin and lower-growth brands.

In June 2019, Hain Celestial sold Hain Pure Protein, comprised of Mifflintown, PA-based Empire Kosher (fresh kosher poultry) and Fredericksburg, PA-based FreeBird (organic and antibiotic-free chicken ), to Aterian Investment Partners in an $80 million carve-out transaction.

Brynwood is an operationally-focused firm that makes control investments in North American-based lower middle-market companies. The firm targets non-core brands or companies operating exclusively in the consumer sector. Since its founding in 1984, Brynwood has acquired more than 50 brands from 20 different corporate sellers. In January 2018, the firm held a final close of its latest fund, Brynwood Partners VIII LP, with $649 million of committed capital. Brynwood currently has $1.1 billion of total capital under management and is based in Greenwich, CT (www.brynwoodpartners.com).

© 2019 Private Equity Professional | October 8, 2019

PPC Adds to C.H. Guenther

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C.H. Guenther & Son has acquired Cookietree Bakeries, a producer of thaw-and-serve cookies and bake-and-serve cookie dough. C.H. Guenther & Son, a producer of branded and private label food products, was acquired by PPC Partners in April 2018.

Cookietree supplies thaw-and-serve cookies and bake-and-serve cookie dough to quick-service restaurants, fast-casual restaurants, club stores and retailers located in North America, Europe, Asia and the Middle East. The company also produces brownies, bars, scones and shortbread. All of the company’s products are manufactured in its 100,000 sq. ft. Salt Lake City facility that is SQF certified, kosher certified and halal certified.

Cookietree, led by its founder and CEO Greg Schenk, was founded in 1981 and is headquartered in Salt Lake City (www.cookietree.com).

C.H. Guenther & Son (CHG) manufactures and markets a wide variety of grain-based and seasoning products, including artisan breads, buns, rolls, biscuits, gravy mixes, frozen appetizers, spices and desserts. Company-owned brand names include Pioneer gravies, seasonings and baking products; Morrison mixes; Tribeca artisan breads; Sun-Bird Asian seasonings; Cuisine Adventure frozen appetizers and snack products; and White Wings tortilla mixes. CHG’s products are sold globally to the foodservice, quick serve restaurant, club and retail sectors. CHG employs over 2,500 people in 19 food manufacturing locations in the US, Canada and Western Europe. The company, led by CEO Dale Tremblay, was founded in 1851 and is headquartered in San Antonio (www.chg.com).

“Greg Schenk and his team have built Cookietree into a market leader in the dessert space. Their customer-centric culture and commitment to innovation are well-aligned with our core values,” said Mr. Tremblay. “We look forward to leveraging our combined capabilities and providing value for customers for years to come.”

Post-close, Cookietree will continue to operate under the Cookietree brand and production will continue at Cookietree’s Salt Lake City facility. With this acquisition, CHG now has more than 3,000 employees and 21 food manufacturing locations in the US, Canada and Western Europe.

“CHG is led by an outstanding team with a proven track record of growth, both organically and through acquisition,” said Chris Trick, a principal at PPC Partners. “The acquisition of Cookietree demonstrates PPC’s commitment to CHG and to partnering with industry leaders to deliver innovative products and excellent customer service. We will continue to support CHG and Cookietree as they look to deliver value to their customers.”

PPC Partners acquires North America-based middle-market companies that have enterprise values between $100 million and $750 million and EBITDA in excess of $15 million. Sectors of interest include manufactured products, services and healthcare.  The firm is led by Tony Pritzker and the former investment and operating professionals of Pritzker Group Private Capital. In July 2018, PPC Partners held a final closing of PPC Fund II LP at its hard cap of $1.8 billion. Fundraising for the new fund was launched in late 2017 and exceeded its original target of $1.5 billion. PPC Partners has offices in Chicago and Los Angeles (www.PPCPartners.com).

El Segundo, CA-based Cody Peak Advisors (www.codypeakadv.com) was the financial advisor to Cookietree on this transaction.

© 2018 Private Equity Professional | August 6, 2018

THL Closes on Buy of Give & Go and NAFTA

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Thomas H. Lee Partners (THL) has completed the acquisition of Give & Go Prepared Foods and completed its first add-on with the buy of NAFTA Foods and Packaging.

Give and Go Prepared Foods provides branded and private label bakery programs across a range of consumer segments including mini-treats, cupcakes, and better-for-you-snacking. Company brands include Two-Bite, Kimberley’s Bakeshoppe, Mason St. Bakehouse, and The Worthy Crumb Pastry Co. Give and Go has 3 production facilities totaling 240,000 square feet and a 40,000 square foot freezer in Toronto. The company, led by CEO Joel Flatt, was founded in 1989 and is headquartered in Toronto (www.giveandgo.com).

“Joel Flatt and the Give & Go management team have created a winning portfolio of on-trend, value-added solutions for their customers in the in-store bakery. The company has been a pioneer in innovation across sweet baked goods categories,” said Jeff Swenson, Managing Director of THL.

Simultaneous with closing, Give & Go completed the add-on acquisitions of Create-a-Treat Ltd. and NAFTA Foods and Packaging Inc. (NAFTA CAT), a maker of edible craft products and the largest North American manufacturer of gingerbread house kits. NAFTA CAT sells under the Create-a-Treat and Orbit brands, as well as under private label brands. NAFTA CAT has three manufacturing facilities in Toronto. The acquired assets of NAFTA CAT will be formed into a new division within Give & Go called Create-a-Treat (www.createatreat.com).

“We are excited about our new partnership with THL whose experience in the consumer goods sector will be a terrific asset for the company as we continue to invest in new products and accelerate our acquisition strategy,” said Mr. Flatt. “NAFTA CAT is an excellent example of the type of acquisition we are seeking in order to grow our platform. I am confident that we found the perfect partners to aggressively expand and scale the Give & Go platform.”

Both Give & Go and NAFTA CAT products are sold predominately through the in-store bakeries of North American retailers and grocers.

Thomas H. Lee Partners, founded in 1974, is one of the oldest private equity investment firms in the United States. Industries of interest include consumer and healthcare, media and information services, and business and financial services. Since its founding, THL has raised approximately $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).

© 2016 Private Equity Professional • 8-3-16