Schlotterbeck & Foss, a manufacturer of specialty sauces and condiments, has been acquired by Frontenac in partnership with the company’s management team. Abacus Finance Group provided the senior debt for this transaction and also made an equity co-investment.
Schlotterbeck & Foss (S&F) develops, manufactures and distributes a range of gourmet sauces, marinades, condiments, salsas, ice cream toppings, spreads and salad dressings. The company has some branded products but the bulk of its operations are used for private label manufacturing. S&F manufactures its specialty food products in small batches with natural, non-GMO and organic ingredients in a SQF-certified facility that opened in 2014.
Condiments are S&F’s largest product category and are sold across all channels. The company’s meat and seafood condiments include such products as cocktail sauce, bacon jam, country ketchup, crab cake sauce, horseradish aioli, blue cheese mustard and tartar sauce. S&F also offers salsas with flavors like chipotle corn, chili, harissa sun-dried tomato, mango pineapple and Texas caviar.
S&F was founded in 1866 by Augustus Schlotterbeck and Charles Foss and was operated by three generations of the Foss family until it was sold in 2003 to Paul and Kathie Dioli. Today, S&F is headquartered in Westbrook, ME (www.schlotterbeck-foss.com).
“We have tracked the private label and sauces sectors for some time and S&F is a standout in these sectors providing the highest quality products. We are excited to partner with the company and its leadership team,” said Betsy Williamson, a Principal with Frontenac.
Frontenac invests in lower middle-market businesses that operate primarily in the food, industrial, and services industries. The firm was founded in 1971 and is headquartered in Chicago (www.frontenac.com).
Abacus Finance Group was the Administrative Agent and Sole Lender for $21.7 million in senior secured credit facilities to support this acquisition and the firm also made an equity co-investment. “We have had a great relationship with Abacus team for many years, and we are thrilled to close our first transaction with them,” said Walter Florence, Frontenac Managing Partner.
“It was great to work with the team at Frontenac, and we were impressed with their knowledge of the food industry space,” said Tim Clifford, President and CEO of Abacus. “The assurance of a quick close and our flexibility – key elements of our Total Partnership Approach™ – were all important factors for Frontenac.” Abacus team members involved in the transaction included Aized Rabbani, Rafal Rydzewski and Tim Wong.
“Abacus conducted its due diligence process efficiently,” said Ms. Williamson, “and they were able to close this transaction within a very short timeframe.”
Abacus provides cash flow-based senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. New York-based Abacus was formed in June 2011 and is an affiliate of New York Private Bank & Trust (www.abacusfinance.com).
Lincoln International was the financial advisor to S&F on this transaction.
© 2017 Private Equity Professional | September 18, 2017