spices

Red Monkey Switches Sponsors

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San Francisco Equity Partners (SFEP) has sold Red Monkey Foods to Norwest Equity Partners. SFEP acquired Red Monkey in January 2017.

Red Monkey is a supplier of natural and organic, branded and store-branded spices, seasonings, salts and bath salts that are sold through the grocery, mass, specialty and e-commerce channels. The company is certified USDA organic and produces its products in an SQF (Safe Quality Food Institute) level III facility located in Springfield, Missouri.

In December 2017, Red Monkey acquired San Francisco Salt Company, a California-based provider of specialty sea salts including Himalayan salt, Epsom salt and Dead Sea salt products sold in both retail and bulk sizes under company-owned brand names including San Francisco Salt, Sherpa Pink, Minera, and Epsoak.

Red Monkey Foods was founded in 2002 and is led by CEO Scott Bolonda, a former senior executive at spice giant McCormick & Co., who joined Red Monkey as its CEO in May 2017.

“SFEP has been a great partner to the Red Monkey management team over the last four years,” said Mr. Bolonda. “Their experience building scalable businesses in the consumer space proved invaluable as we successfully executed on our strategy of becoming the premier supplier of premium organic flavor solutions. Our team greatly valued SFEP’s operational approach to partnership. We look forward to capitalizing on the tremendous momentum in the business with our new partners at Norwest Equity.”

Norwest Equity (NEP) makes equity investments of $30 million to $250 million in companies that have more than $10 million in EBITDA. Sectors of interest include agriculture, business services, consumer, distribution, industrials, energy, and healthcare. The firm is currently investing Norwest Equity Partners X LP, a $1.6 billion fund that closed in April 2015. NEP was founded in 1961 and is headquartered in Minneapolis with an additional office in Palm Beach.

“We have thoroughly enjoyed working with the talented team at Red Monkey as they have built an outstanding business,” said David Mannix, an SFEP Partner. “Over the course of our partnership, the company more than tripled revenue and EBITDA, completed a synergistic acquisition and significantly expanded its supply chain and manufacturing capabilities. Red Monkey is well-positioned for continued growth and we wish the management team and Norwest Equity success in their new partnership.”

San Francisco-headquartered San Francisco Equity Partners makes control and minority investments of $5 million to $25 million in consumer companies that have revenue of up to $100 million and EBITDA of up to $10 million. Consumer sectors of specific interest include apparel; beauty and personal care; food and beverage; health and wellness; household products; outdoor and recreation; pet care; and specialty retail.

Stifel was the financial advisor to Red Monkey on this transaction.

© 2020 Private Equity Professional | December 11, 2020

Falfurrias Buys Food Business of C.F. Sauer

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Falfurrias Capital Partners has agreed to acquire the food business assets of The C.F. Sauer Company (Sauer). This transaction includes only Sauer’s food business assets and excludes the company’s real estate portfolio. At closing, the acquired business will be known as Sauer Brands Inc.

The C.F. Sauer Company manufactures a line of condiments, spices, seasonings and extracts, including well-known brands Duke’s Mayonnaise, The Spice Hunter, Sauer’s, Gold Medal, and BAMA. The company’s regional brands and private-label products are sold through the retail and foodservice channels.Sauer, founded in 1887 by Conrad Frederick Sauer, has 860 employees and manufacturing facilities in Richmond, VA (headquarters); Greenville, SC; New Century, KS; and San Luis Obispo, CA (www.cfsauer.com).

At closing, Conrad F. Sauer IV, the fourth generation of his family to lead the company, will retire as president and CEO but will continue to serve on the board of directors of the company. Joining the company will be William Lovette, a 37-year food industry veteran with Tyson Foods and Pilgrim’s Pride, who has been named interim CEO and executive chairman. Falfurrias Capital Partners principal Chip Johnson and partner Ken Walker will also join the company’s board of directors.

“I am humbled to be able to have a small part in leading the next phase of growth and have a hand in making The C.F. Sauer Company an even more dynamic force in the markets it serves,” said Mr. Lovette. “The foundation of the company has always been its exceptional people, in Richmond, Greenville, San Luis Obispo and New Century, and the success they have created over the past 132 years provides a great benchmark for us as we move forward.”

Falfurrias makes equity investments in growth-oriented middle-market companies that have revenues in excess of $10 million and EBITDAs in excess of $2 million. In February 2019, Falfurrias closed its latest fund, Falfurrias Capital Partners IV LP, at its hard cap of $500 million. The firm’s earlier fund closed with $275 million of capital in March 2017. Falfurrias was founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America, and Marc Oken, former CFO of Bank of America, and is based in Charlotte, NC (www.falfurriascapital.com).

“Falfurrias Capital Partners is honored to partner with Conrad and the rest of The C.F. Sauer Company family to build on the legacy of success created over four generations,” said Marc Oken, chairman of Falfurrias Capital Partners. “The C.F. Sauer Company is a proven performer in a durable growth market, and we see great potential to accelerate growth and provide new opportunities for employees throughout the company.”

Falfurrias has prior experience in the food industry, including its current ownership of Best Impressions, a Charlotte, NC-based provider of catering services that was acquired in October 2018; and through its prior ownership of Bojangles, a Charlotte, NC-based operator and franchisor of chicken quick-service restaurants with over 500 restaurants located throughout the southeastern United States. Falfurrias acquired Bojangles in September 2007 and sold the company to Advent International in August 2011.

“I am so grateful to all of the people of The C.F. Sauer Company who have helped write our company’s tremendous success story over the past 132 years, and I look to the future with great optimism,” said Mr. Sauer. “We have found the ideal growth partner in Falfurrias Capital Partners, and I look forward to working with Bill and the rest of the team to author the next chapter.”

RBC Capital Markets is the financial advisor to The C.F. Sauer Company.

The sale of the food business is subject to shareholder approval at The C.F. Sauer Company’s annual meeting on July 15, 2019.

© 2019 Private Equity Professional | June 24, 2019

Palladium Acquires Spice World

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Palladium Equity Partners has acquired Spice World, a supplier of garlic and other spices under the Spice World brand name. Palladium partnered with the Spice World management team on this transaction.

Spice World offers a wide portfolio of fresh, semi-processed and processed garlic in a variety of formats, including fresh, peeled, and minced. The company also sells other spice products including ginger and shallots. Spice World’s products are sold in the US to more than 200 customers in all 50 states including grocery chains, club stores, and distributors. The company considers itself to be the largest supplier of garlic to America’s supermarkets. Spice World has multiple production facilities in California and is headquartered in Orlando (www.spiceworldinc.com).

 

Spice World was founded in 1949 by Andy Caneza and has been led by multiple generations of the Caneza family. Today, the company is led by CEO Gary Caneza and Vice President Drew Caneza. “We view the partnership with Palladium as a great opportunity to continue doing what we have enjoyed in our nearly 70 years of operations – serving our customers,” said Gary Caneza. “Our family is excited to work alongside Palladium to achieve our growth plan while maintaining our core values.”

Palladium’s value creation strategy for Spice World includes new product development, expansion into new channels, and add-on acquisitions in the spices category. “We look forward to partnering with Gary, Drew and the entire Caneza family to continue the legacy that has made Spice World a success since its founding,” said Adam Shebitz, a Managing Director of Palladium. “This investment is consistent with our strategy of partnering with founder and family-run businesses to support their growth objectives.”

Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA.  Sectors of interest include food and consumer, services, industrials, and healthcare. Palladium has a focus on companies that operate in the US Hispanic market.  Since its founding in 1997, Palladium has invested over $1.9 billion of capital in more than 30 platform investments and completed over 100 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).

Palladium’s current and past investments in the food industry include Kar’s Nuts, a snack nut and trail mix product company; Del Real Foods, a Hispanic refrigerated foods company; Teasdale Foods, a producer of bean and hominy products; Sahale Snacks, a manufacturer and marketer of branded nut and fruit snacks; Wise Foods, a manufacturer and marketer of salty snacks; Castro Cheese, a manufacturer and distributor of Hispanic cheeses and other dairy products; and Taco Bueno Restaurants, a Tex-Mex restaurant chain.

Deloitte Corporate Finance was the financial advisor to Spice World and Moore & Van Allen provided legal services. Piper Jaffray was the financial advisor to Palladium with both Kirkland & Ellis and Simpson Thacher & Bartlett providing legal services.

© 2018 Private Equity Professional | July 11, 2018