Private-equity firm Permira is to buy US snacks firms Medora Snacks and Ideal Snacks Holding.
Permira plans to combine the businesses into a single company – BFY Holdings – which it said would be a "leader in the better-for-you snack product category".
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Medora makes branded snacks, including PopCorners and Pop Crinkles, while Permira described Ideal as a contract manufacturer of "diversified popped snacks". Both businesses were set up by Zeke Alenick, who will stay on at BFY Holdings. He will own a minority stake in the new company.
"This is the perfect time for Medora and Ideal to bring on a strategic growth partner and we couldn’t have found a better partner than the Permira funds. With their decades of experience backing growing consumer brands, we are eager to leverage their extensive expertise in marketing, sales, and international development to grow our company," Alenick said.
Permira said PopCorners is "one of the fastest-growing brands" among better-for-you snacks and has a "growing presence" across North America and other international markets. Ideal makes popped snacks for branded manufacturers and retail customers.
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John Coyle, a partner at Permira, said: "We are in the midst of a seismic shift within the food industry in which consumers are actively seeking out healthier snack products while not sacrificing taste. With better-for-you snacking trends on the rise globally, BFY Holdings has tremendous potential to capitalse on the clear market opportunities, including expanding brand awareness and distribution of its existing products, and continuing to introduce new and exciting products."
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By GlobalDataMedora and Ideal are based in New York state. They will keep their facilities in Middletown and Liberty, Permira said.
The transaction is expected to close in the third quarter. Financial details were not disclosed.
