US: Vestar, Goldman Sachs acquire contract manufacturer Hearthside
Private equity firms Goldman Sachs and Vestar Capital Parters have acquired Illinois-based bakery and snack contract manufacturer Hearthside Food Solutions from Wind Point Partners.
Hearthside operates 20 food manufacturing facilities across eight states in the US. The co-manufacturer provides baked goods and grain-based food and snack products for "some of the world's leading premier brands", Vestar said.
Hearthside manufactures more than 150 brands and 1,400 SKUs for its food sector customers. It is focused on four main product platforms: bars, cookies and crackers, granola and cereals and snacks.
Dan O'Connell, CEO of Vestar, suggested that he sees significant growth potential in the co-manufacturer model.
"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. 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," he stressed.
Rich Scalise, chairman and CEO of Hearthside, added: "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."
Terms of the deal, which is expected to close in the second quarter, were not disclosed. Goldman Sachs and Vestar will hold equal stakes in the company.
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