Brynwood Partners VII L.P. announced that its newly formed portfolio company, JPC Acquisition Co., has acquired Joseph's Pasta Co. from Nestlé Prepared Foods Co. Nestlé acquired Joseph's in 2006. Terms and conditions of the transaction were not disclosed.
The Joseph's business, headquartered in Haverhill, Mass., has a leading position as a manufacturer and marketer of premium frozen stuffed pasta for the foodservice segment. Joseph's incorporates time-honored recipes and methodologies to make a wide range of superior pasta and sauces products that inspire innovation and customer loyalty. Its artisan products include stuffed cannelloni, stuffed ravioli, stuffed tortellini, gnocchi, and manicotti. Joseph's premium products are differentiated from its competitors' offerings as the company only uses the highest quality pasta and freshest ingredients. The business employs over 300 individuals.
"We are pleased to announce the acquisition of Joseph's from Nestlé," said Henk Hartong, senior managing partner, Brynwood Partners. "Joseph's manufactures delicious and unique products in its state-of-the-art manufacturing facility. We are excited about the opportunity to accelerate innovation and explore new distribution channels. We look forward to investing in the business and working with Joseph's loyal and talented employees to grow and enhance the business. I would like to thank the Nestle team for its partnership and assistance in transitioning the business."
Brynwood has an established track record in the frozen food space. One of Brynwood Partners' most successful investments was in Richelieu Foods Inc., a leading private label manufacturer of frozen pizza and salad dressings. Richelieu Foods was a portfolio company of Brynwood Partners V L.P. and was divested in 2010. "We had a great deal of success with Richelieu Foods in the frozen food space in both the retail and foodservice channels," Hartong continued. "We hope to be able to utilize some of that experience in the Joseph's investment."
This acquisition marks the first for Brynwood VII, Brynwood Partners' largest and most recently raised fund with $400 million of committed capital. Including Joseph's, Brynwood Partners has now completed five acquisitions from Nestle, with this being the second in 2013. Earlier in the year, Brynwood Partners VI L.P.'s portfolio company, Pearson Candy Co., acquired the iconic Bit-O-Honey brand from Nestlé.
Brynwood Partners has developed a unique niche of being the lower middle market firm of choice for corporate divestitures. The Firm has a well-established track record of reviving smaller brands or businesses that are divested from large corporations. In its 29-year history, Brynwood Partners has now acquired 40 corporate brands from 15 different corporate sellers.
Brynwood Partners has a strong investment track record in the food space with active investments, including:
- DeMet's Candy Co. (Brynwood V portfolio company), a leading U.S.-based chocolate confectionery company manufacturing and marketing the Turtles, Flipz, and Treasures brands.
- Back to Nature Foods Co. LLC (Brynwood VI portfolio company), a marketer of Back to Nature natural food products, including crackers, cookies, nuts, granolas, and juices as well as the recently acquired SnackWell's healthy cookies and snacks business.
- Pearson Candy Co. (Brynwood VI portfolio company), a manufacturer and marketer of widely recognized confectionery brands, including Pearson's Salted Nut Roll, Pearson's Mint Patties, Pearson's Nut Goodies, Pearson's Bun, and Bit-O-Honey.
- Lightlife Foods Inc. (Brynwood VI portfolio company), a manufacturer and marketer of soy-based vegetarian burgers, hot dogs, tempeh, and other refrigerated and frozen items in the meat alternative category under the Lightlife brand.
Prior investments by Brynwood Partners in the food space include Sun Country Foods Inc., Balance Bar Co., Lincoln Snacks Co., and Signature Snacks Co.