Private investment firm Highlander Partners formed Bettera Brands, a new holding company headquartered in San Francisco. Bettera is executing a “buy and build” strategy in the confection and snack industry, targeting acquisitions of companies and assets that have excellent brand equity and strong growth potential.

Bettera is focused on creating value through customer cross-pollination, geographic expansion and new product development. Bettera’s principals have executed more than 30 transactions in the food, confection and snack categories and will use their expertise to pursue acquisitions of both stand-alone businesses and carve-outs from larger companies.

In connection with Bettera’s formation, Gimbal Brothers has been acquired by Highlander. Gimbal’s, founded in 1898, is a manufacturer of gummy vitamins and gourmet jelly beans.

Simultaneously with the transaction, Highlander contributed its portfolio company, Hillside Candy, into Bettera, adding the Hillside brands of GoOrganic, GoLightly, Hillside Candy and Pick Your Color to the Bettera portfolio.

Regions Bank, as administrative agent, along with a syndicate of participating lenders, provided senior financing and Norwest Mezzanine Partners provided mezzanine debt in support of the transaction. MHT Partners, an independent investment bank headquartered in Dallas, served as the advisor to Gimbal Brothers.

Dallas-based Highlander Partners is a private investment firm with over $1.2 billion of assets under management.