Nestle sells Turtles confectionery brand to private equity fund
"Private equity fund Brynwood Partners is to acquire the rights to the Turtles confectionery brand in the US from Nestle, through a newly formed company, DeMet's Candy Company. The acquisition is expected to close by June 1, 2007. Under the deal, Brynwood Partners will also acquire Nestle's Turtles production facility in Toronto, Canada in a separate transaction and will merge this manufacturing facility into DeMet's."
Continue reading: Nicci Pugh , "Nestle sells US rights to Turtles confectionery brand", Food Business Review, 24 May 2007.
DeMet's will manufacture Turtles in the Canadian facility to supply the US business and will continue to supply Turtles and selected other products to Nestle Canada through a long-term supply contract.
DeMet's will market Turtles products in the US. Brynwood Partners intends to merge another of its operating companies, Signature Snacks Company, the producers of Flipz coated pretzels, with DeMet's and integrate both product lines into a combined confectionery company.
Brynwood Partners said that David Clarke will be appointed to the position of president and CEO of DeMet's Candy Company. Mr Clarke had previously served as the president and COO of Signature Snacks. Brynwood Partners is to retain the management team of Signature Snacks to run the newly formed DeMet's Candy Company.
Henk Hartong III, managing partner of Brynwood Partners, said: "Brynwood Partners is very excited about the acquisition of the famous Turtles brand and the reintroduction of the storied DeMet's name to the candy business. We have a successful track record in the food space and specialization in the confectionary area. Revitalizing undervalued brands through rigorous operational focus and strong marketing initiatives has been a key component of Brynwood Partners' success.
"This acquisition, combined with our already successful investment in Flipz, will offer us continued and significant growth opportunities."
Brynwood Partners also owns the Stella D'oro Biscuit Company and Richelieu Foods, a leading supplier of private label salad dressing and frozen pizza.
"Turtles is a wonderful brand and an indulgent chocolate treat," said Mr Clarke. "The combination of Turtles and Flipz under DeMet's will create a national, full line chocolate company. The combined product lines will allow us to become a much more significant supplier to our retail customers."