Creations Foods, a US-based better-for-you snacks company, has acquired local peer Highkey for an undisclosed sum.
Washington State-based Creations said the deal fits in with its strategy of building a portfolio of healthier snack brands which started with its acquisition of Moon Cheese in March last year.
Creations, a gluten-free and plant-based snacks supplier, is owned by agri-food-focused Canadian private-equity firm Rio Investment Partners. It produces the Toatzy brand of cookies and also serves private-label clients.
Florida-based Highkey has a portfolio of low-carb and low- or no-sugar snacks including cookies, wafers and bites.
Aki Georgacacos, chairman and CEO of Creations, said: “We’re pleased to have acquired the assets of a second leading brand in the better-for-you snack segment.
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“Leveraging our acquisition of Moon Cheese last year, we are moving quickly to reinforce both brands in the marketplace as we continue our evolution into an integrated manufacturer and marketer of leading low-carb baked snacks.”
Georgacacos told Just Food that discussions with Highkey had been going on for more than a year.
Expanding on its attractiveness as an M&A target, he said: “The Highkey brand maintains strong connections to its base as the leading no-sugar brand in the category across both retail and e-commerce.”
He said Creations remains in the market for further acquisitions.
“We are actively pursuing better-for-you brands that make strategic sense within our product portfolio and product innovation roadmap,” he said.
In its last deal, Creations bought the Moon Cheese snack brand from EnWave Corp., a Canada-based microwave vacuum drying technology specialist.
Moon Cheese was originally created as a partnership between the Canadian firm and Creations in 2015 under a joint venture, NutraDried Creations, split 51% and 49%, respectively.