Highlander Partners has formed Bettera Brands, a new San Francisco-based platform holding company to acquire and grow companies operating in the confections and snack industry. As part of this transaction, Gimbal Brothers, a manufacturer of both branded and private label gummy vitamins and gourmet jelly beans, was acquired by Highlander through Bettera Brands.
Gimbal Brothers has fully integrated manufacturing capabilities, and its production facility is SQF Level 3 (Safe Quality Food Institute) and is NSF/CFR111 certified for vitamins and dietary supplements. The existing owners of Gimbal’s joined the Bettera ownership and will continue their support of the Gimbal’s brand. Gimbal’s was founded as the Gimbal Candy Kitchen in downtown San Francisco by Alexander Gimbal in 1898 (www.gimbalscandy.com) (www.gimbalsgummyvitamins.com). Estle Kominowski, the COO of Gimbal’s has been named the CEO of Bettera Brands.
Highlander Partners has also contributed its existing portfolio company, Hillside Candy (acquired in November 2016), to Bettera. Hillside Candy
manufactures and markets organic, sugar-free and traditional confection products under the GoOrganic, GoLightly, Pick Your Color and Hillside Candy brands. The company sells its products through the food, drug, mass, dollar and boutique specialty retail channels. Additionally, through its SQF Level 3 facility, Hillside manufactures products for customers in the nutraceutical industry and provides a variety of private label offerings. The company was founded in 1945 and is based near Newark in Hillside, NJ (www.hillsidecandy.com).
Through Bettera Highlander will execute a “buy and build” strategy in the confection and snack industry, targeting acquisitions of companies and assets that have excellent brand equity and strong growth potential. Bettera will create value through cross selling, geographic expansion and new product development. Highlander will provide additional capital to Bettera as needed to pursue this strategy.
“Highlander’s forte is a ‘buy and build’ strategy in fragmented industries, which we have executed successfully in several categories,” said Jeff Hull, the President of Highlander. “Establishing Bettera Brands in conjunction with our acquisition of Gimbal’s shortly after we acquired Hillside will provide a launchpad for additional transactions. This is just the beginning of our long-term vision. We have a robust pipeline of acquisition opportunities that will complement Bettera’s offerings and enhance the company’s position in the market. Just like the transactions completed to date, we will be looking for quality businesses with strong confection and snack brands, exceptional consumer loyalty, a history of innovation and defensible margins. We firmly believe that Bettera’s strong management team together with Highlander’s expertise and significant capital will allow us to build a very special company in the confection and snack space.”
As a result of these transactions, Bettera’s product offering now includes gourmet jelly beans, gummy vitamins, organic and sugar-free hard and chewy confections, licorice and traditional hard candy. The company can also use its manufacturing capabilities to incorporate nutraceutical ingredients and essential oils into confectionery delivery systems, a growing trend in the nutraceutical space.
Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $1.2 billion in capital under management and is based in Dallas (www.highlander-partners.com).
Regions Bank and a syndicate of participating lenders, provided senior financing and Norwest Mezzanine Partners provided mezzanine debt in support of the transaction.
MHT Partners, an investment bank headquartered in Dallas, was the financial advisor to Gimbal Brothers.
© 2017 Private Equity Professional | April 4, 2017