American private equity firms Goldman Sachs and Vestar Capital Partners will buy Hearthside Food Solutions, from Wind Point Partners for an undisclosed sum.
Headquartered in Downers Grove, Illinois, Hearthside Food Solutions is a bakery and contract food manufacturer offering bars, cookies/crackers, granola/cereals, and snack products. The company also produces over 150 brands and 1,400 SKUs.
The deal comes less than a year after Wind Point Partners merged two of its portfolio companies, Hearthside Food Solutions and Ryt-way Industries, to create a contract food manufacturer with more than $1bn in sales.
The transaction is due for completion in the second quarter of 2014.
Each of the private investors will own equal shareholding in Hearthside.
Hearthside chairman and CEO Rich Scalise said, "Going forward, by leveraging the experience and relationships of both Goldman and Vestar, we are confident we can take the company to the next level of growth in the contract manufacturing industry."
Vestar Capital Partners CEO Dan O'Connell said that now more than ever, food companies are turning to co-manufacturers like Hearthside to help them initiate and accelerate the commercialization process and for timely response to changing consumer preferences.
Debt financing for the transaction will be provided by Barclays Capital and Goldman Sachs.
