US-based private equity firm Wind Point Partners is planning to merge two of its portfolio companies – Hearthside Food Solutions and Ryt-way Industries, a move which will create a leading contract food manufacturer in North America, with more than $1bn in sales.
The merger will take effect later this month and the combined entity will have 19 manufacturing facilities across seven states in the US.
Wind Point Partners had acquired Hearthside in April 2009 and Ryt-way in August 2008. Hearthside is a contract manufacturer of consumer baked foods and snacks, while Ryt-way is a dry-food contract packager.
The two companies offer contract manufacturing services to leading food and consumer packaged goods companies in North America.
In the ownership of Wind Point - Hearthside and Ryt-way each completed three acquisitions that further diversified each company's customer base and product portfolio.
Wind Point managing director Mark Burgett said: "By combining two industry leaders, we are able to create significant growth opportunities for the business in addition to value for our investors. Given the similarities between the businesses, we expect to start realizing benefits immediately."
Hearthside Food Solutions CEO Rich Scalise said: "Hearthside and Ryt-way have a complementary customer base and supply chain capabilities. The combined company will be not only significantly larger but also able to deliver a wider array of services."
Rich Scalise will serve as the chief executive officer for the combined business.
Ryt-way CEO David Finch said that by offering a broader suite of capabilities, Hearthside and Ryt-way will become a one-stop shop for contract manufacturing.
