New Water Capital Partners has acquired sister companies Custom Corned Beef, a manufacturer of raw and cooked corned beef, roasts and deli meats, and Custom Made Meals, a manufacturer of oven-ready entrees and appetizers.
Custom Corned Beef’s products include raw and cooked corned beef, roast beef and pastrami; and specialty items such as chorizo, beef brisket, barbeque pork, barbacoa, beef pot roast and Chinese pork. The company was founded by members of the Jewsbury family in 1977 and is based in Denver (www.customcornedbeef.com).
Custom Made Meals is a manufacturer of branded and private label oven-ready, entrees and appetizers that are sold in more than 6,000 retail grocery locations nationwide. The company is based in Denver (www.custommademeals.com).
These transactions allow the Jewsbury family, the majority owners of Custom Made Meals and Custom Corned Beef, to exit the businesses. John Birdsall, currently President of Custom Made Meals, will remain with Custom Made Meals as President and Board member.
According to New Water, Custom Made Meals is well positioned for growth and expansion into new markets. “The company has shown a steady trajectory at a time when consumer demand for convenient, ready-to-cook meals continues to grow substantially,” said Jason Neimark, a Partner of New Water. “At the same time, rising labor costs and stricter health and safety requirements have made it less cost-effective for supermarkets to prepare ready-to-cook foods in-house, providing more growth opportunities.”
“I’m extremely excited about our partnership with New Water,” said Mr. Birdsall. “After meeting with several prospective partners over the past six months, we found New Water Capital to be the best fit for our company’s goals. They believe in us, our company, our management team and staff, and are ready to help us take Custom Made Meals and Custom Corned Beef to the next level.”
New Water invests in lower middle market companies that are in a period of transition and have revenues between $30 and $300 million. Sectors of interest include consumer products, retail, and industrial manufacturing and services industries. The firm was founded in September 2014 and is based in Boca Raton (www.newwatercap.com).
“By investing in manufacturing infrastructure, new automation technologies, and management expertise to help the company streamline and optimize its operations, New Water will help Custom Made Meals expand its market share in this highly fragmented sector,” said John Disa, a Partner of New Water. “It is an amazing opportunity for both companies.”
Private Bank & Trust Company provided the senior debt financing for the transaction and Triton Capital Partners was the financial advisor to Custom Made Meals and Custom Corned Beef.
© 2017 Private Equity Professional | April 4, 2017