Wind Point Partners has entered into an agreement to sell its portfolio company Hearthside Food Solutions to Goldman Sachs and Vestar Capital. Hearthside Food Solutions was Wind Point’s first acquisition in its most recent fund, Wind Point VII.
Wind Point formed Hearthside in April 2009 in partnership with food industry veteran Rich Scalise, whose previous experience included serving as President of Ralcorp Frozen Bakery Products. Mr. Scalise also spent 18 years with ConAgra Foods in a variety of roles including his last position as President and COO of ConAgra’s $3 billion Refrigerated Foods Division.
Hearthside Food Solutions is the nation’s largest independent bakery and a full service contract manufacturer of grain-based food and snack products. Hearthside operates 20 food manufacturing facilities in eight states and is headquartered in the Chicago suburb of Downers Grove (www.hearthsidefoods.com).
Under Wind Point’s ownership, Hearthside completed four add-on acquisitions to create a leading contract food manufacturer in North America with over $1 billion in sales. In May 2013, Wind Point merged Hearthside Food Solutions with its portfolio company, Ryt-way Industries, a bakery and a contract manufacturer, which it had acquired in August 2008.
“Over the past five years Hearthside has more than tripled in size. We’ve broadened our product capabilities, significantly expanded our footprint to 20 facilities in eight states, and developed new customer relationships with high-growth, recognized consumer brands. Wind Point has been an involved and supportive partner throughout,” said Mr. Scalise.
“Together Rich and Wind Point successfully re-positioned a small carve-out of a family business as an industry leader with a reputation as a focused, fast and flexible partner. Rich executed on the plan to create value that we established at the outset of the investment, and he is an excellent example of why Wind Point partners with top caliber CEOs to drive value creation at our portfolio companies,” said Mark Burgett, a managing director at Wind Point.
Wind Point Partners invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm has approximately $2.5 billion in capital under management and has completed more than 90 investments and 161 add-on acquisitions across its seven private equity funds. Wind Point Partners is based in Chicago (www.wppartners.com).
Barclays served as exclusive financial advisor to Wind Point Partners and Hearthside Food Solutions; DLA Piper acted as the legal advisor to Wind Point Partners; and KPMG provided accounting services in connection with the transaction.
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-19-14