Food-focused private equity platform Power Sustainable Lios has acquired Crofter’s Organic, a Canada-based organic jams, jellies and fruit spreads producer.

The deal includes co-investments from Farm Credit Canada (FCC), BMO Capital Partners and the Latka family, which founded Crofter’s, according to a statement from Lios yesterday (22 Janaury).

Financial terms of the transaction were not disclosed.

Crofter's Organic CEO Tim Jax said: “Partnering with Lios, FCC, and BMO Capital Partners enables us to accelerate our mission of delivering high-quality organic fruit spreads to more households across North America and beyond.”

Lios said the investment will back Crofter’s “next phase of expansion”, which includes boosting capacity, brand-building through marketing spend, and product development.

Power Sustainable Lios managing partner Jonathan Belair said: “Our investment in Crofter's reflects our conviction in the long-term growth of sustainably oriented food businesses.

“Crofter's has built an exceptional brand rooted in quality, organic ingredients, and responsible production.”

The transaction also marks the exit of Chicago-based private equity firm Frontenac, which purchased a majority stake in Crofter’s Organic in February 2021.

Frontenac confirmed the sale in a separate statement.

It said in the last five years Frontenac and Crofter’s “expanded the brand and better-for-you positioning into mainstream channels, scaled the team, upgraded the company’s systems and enterprise-wide processes, and enhanced its innovation and product development capabilities”.

Meanwhile, the Latka family will remain involved as a long-term partner in the business.

Founded in 1989, Crofter's Organic manufactures organic jams, preserves and fruit spreads for its namesake brand and for private-label and contract manufacturing partners.

The Parry Sound, Ontario-based company operates an automated production facility in the province.

The firm distributes its products across “major retailers” in North America.