Carolina Foods, a baked goods manufacturer in the US state of North Carolina, has attracted investment from local private-equity firm Falfurrias Capital Partners.
Falfurrias, which also owns the Duke’s Mayonnaise and spices and sauces producer Sauer Brands in Virginia, did not disclose the investment amount or potential stake it has taken in Charlotte-based Carolina Foods, a business founded in 1934 employing around 400 people. The private-equity firm, which is located in the city of Charlotte, also counts popcorn seasoning firm Chicago Custom Foods in its portfolio.
Carolina Foods CEO Paul Scarborough, the son of late founder Vernon Scarborough, will remain with the company, as will “third-generation leaders” Katie Scarborough Caldwell and Ruffin Scarborough, according to a statement from Falfurrias.
The manufacturer produces doughnuts, honey buns, pies and fritters under the Duchess brand sold into foodservice customers, club stores, mass merchandisers and convenience retailers across the US, as well as Canada, Puerto Rico and Mexico. It also serves the private label and co-manufacturing sectors from "multiple locations" in Charlotte totalling 240,000 square feet, including a production facility in the city's South End district.
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"This partnership will give us the financial resources and management expertise to take Carolina Foods to another level," said CEO Scarborough, who joined the business in 1977. "Falfurrias has a tremendous track record of helping the companies they invest in realise next-stage growth, and their expertise in food marketing and distribution will be especially useful to our organisation."
Marc Oken, the chairman of Falfurrias, established in 2006, added: "We see tremendous growth potential for Carolina Foods, including expanding both its manufacturing capacity and distribution footprint. They've built a fantastic company based on great products, great people and sound management, and we're excited to be partners in this next stage of their development."