Prospect Partners has sold its interest in Mediterranean food manufacturer and distributor Kronos Foods to Grey Mountain Partners. Prospect Partners formed Kronos Foods in December 2004 to acquire Kronos Products and its affiliated distribution company from CM Equity Partners.
Founded in 1975, Kronos began as a small seller in Chicago’s Fulton Street market district. It has since, through new products and growth in distribution, become a differentiated manufacturer of Mediterranean and other premium foods, with distribution nationwide through foodservice channels and major retailers, including broadline and specialty distributors, club stores, mass merchants and grocery chains. The company’s products include gyros meat, pita/flatbreads, hummus, sauces, and desserts primarily under the Kronos and Sinbad Sweets brands. Kronos also produces custom products for quick service retail, fast-casual, and family dining restaurant chains. Kronos is based in the Chicago suburb of Glendale Heights (www.kronosfoodsinc.com).
“Kronos has achieved substantial growth through the leadership of its management team, led by CEO Howard Eirinberg,” said Lou Kenter, a Founding Principal of Prospect Partners. “We were fortunate to support significant growth initiatives that included a new state-of-the-art 208,000-sq-ft facility in Glendale Heights, extending the product line, and expanding nationwide distribution. The Kronos team did a great job executing the plan and building on the Kronos brand to become the leading company in the Mediterranean food category.”
Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues of less than $75 million. Areas of interest include niche manufacturing, distribution, and specialty service markets. Since 1998, Prospect Partners has built 48 platforms by investing in more than 140 businesses. The firm has $470 million of capital under management and is based in Chicago (www.prospect-partners.com).
“Prospect Partners has been a terrific partner in every respect. The team shared our entrepreneurial drive and steadfast commitment to product innovation and quality and helped us become the market leader we are today,” said Mr. Eirinberg.
Grey Mountain has approximately $700 million of assets under management and was founded in 2003 by managing partners Rob Wright and Jeff Kuo. The firm invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace and defense; building products and materials; business process outsourcing; diversified manufacturing; energy and power; financial services; food and beverage; healthcare services and technology; industrial services; packaging; professional services; specialty chemicals; technology; transportation and logistics; and wholesale distribution. Grey Mountain is based in Boulder with additional offices in Minneapolis and Pittsburgh (www.greymountain.com).
© 2016 Private Equity Professional • 10-5-16
