US: Continental Mills buys Sun Country Foods from PE firm Brynwood Partners
By Dean Best | 11 December 2012
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Brynwood formed Sun Country Foods when it acquired Kretschmer from PepsiCo in 2011 |
US baking mix manufacturer Continental Mills has acquired Kretschmer wheat germ owner Sun Country Foods from private-equity firm Brynwood Partners.
Continental Mills, which owns products including Krusteaz pancake mixes, said it wanted to invest in branded businesses.
President and CEO John Heily said: "The purchase of Sun Country Foods and the Kretschmer wheat germ brand are very much aligned with our core product lines. We are very interested in investing in our branded business and this is a great health oriented food that has been a mainstay in the health category of products for many years."
Brynwood formed Sun Country Foods to acquire Kretschmer from PepsiCo last year. The private-equity firm did not announce details on either the acquisition or the sale but managing partner Ian McTaggart said the buyout house was "very happy with the outcome" of the disposal.
It is Brynwood's second sale in a fortnight. Last month, it sold US energy bar brand Balance Bar to vitamin and supplement giant NBTY.
Continental Mills, Inc. Purchases Sun Country Foods, Inc. Including The Kretschmer® Wheat Germ Brand
TUKWILA, Wash., Dec. 11, 2012 /PRNewswire/ -- Continental Mills, Inc. has acquired Sun Country Foods, Inc., headquartered in Norwood, Massachusetts, from Brynwood Partners VI L.P., including the iconic Kretschmer® Wheat Germ brand and a manufacturing facility located in Manhattan, Kansas. The terms and conditions of the transaction were not disclosed.
The Kretschmer® brand was founded in 1936 by Charles Kretschmer, and now has a 90% market share in the U.S. wheat germ category and is offered in two flavors: Original Toasted and Honey Crunch. Sun Country Foods was formed by Brynwood VI in 2011 to acquire the Kretschmer® brand.
John Heily, President and CEO of Continental Mills, said "The purchase of Sun Country Foods and the Kretschmer® Wheat Germ brand are very much aligned with our core product lines. We are very interested in investing in our branded business and this is a great health oriented food that has been a mainstay in the health category of products for many years. We are excited to add these high quality products to our core lines of Krusteaz® pancake and baking mixes, Ghirardelli® brownie and cookie mixes, and most recently WildRoots® all natural trail mixes and grain blends, as well as other labels that we currently own."
"We are delighted to announce the divestiture of Sun Country Foods, Brynwood VI's second portfolio company divestiture in the last month," said Hendrik J. Hartong III, Chairman, Sun Country Foods and Senior Managing Partner, Brynwood Partners. "We are grateful to all of the Sun Country Foods employees for their hard work and dedication to the business and wish Continental Mills much success with this great brand."
Original source: Continental Mills
Sectors: Bakery, Mergers & acquisitions
Companies: PepsiCo
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