Goldman Sachs, Vestar Capital Partner to Acquire Hearthside Food
Goldman Sachs and Vestar Capital Partners announced they signed a definitive agreement to acquire Hearthside Food Solutions from Wind Point Partners. Terms were not disclosed. The transaction is expected to close in the second quarter of 2014. Goldman Sachs and Vestar will own equal stakes in the company going forward.
Affiliates of Barclays Capital and Goldman Sachs provided commitments for debt financing for the transaction. Davis Polk & Wardwell acted as legal advisor to Goldman Sachs and Vestar.
“When we launched Hearthside in 2009, we envisioned a company that could transform the contract manufacturing industry,” said Rich Scalise, chairman and CEO of Hearthside. “We have achieved that goal, building an industry leader and a highly successful business in the last five years based on the principles of being fast, flexible and adding more value. 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. We look forward to working with our new partners.”
“Hearthside is a leader in the co-manufacturing industry and management has done an excellent job accelerating its growth trajectory,” said Nicole Agnew, a managing director in the Merchant Banking Division at Goldman Sachs. “We are extremely pleased to have the opportunity to invest in Hearthside and partner with its first class management team and employees.”
“Hearthside is not only one of the largest co-manufacturers in the food industry, but also the leader in quality, safety, and innovation. They respond rapidly to industry trends and shifting consumer preferences,” said Dan O’Connell, CEO of Vestar. “Now more than ever, food companies turn to co-manufacturers like Hearthside to help them initiate and accelerate the commercialization process and for timely response to changing consumer preferences. We are excited to work with Rich and his talented team to take advantage of these positive long-term trends and grow the business.”
Downers Grove, IL-headquartered Hearthside Food Solutions is an independent bakery and a full-service contract manufacturer of grain-based food and snack products for many global brands.