Buyouts Continue for Mid-Sized Food Companies
The multi-billion buyout business may be stalled, but private equity continues to snap up medium-sized food companies with little letup. On September 17, the private equity firm Palladium Partners - a fund specializing in businesses targeting US Hispanic consumers - acquired the Castro Cheese Company, a Texas-based maker of cheeses and creams. Palladium's other portfolio companies in the IUF sectors include the fast-food chain Taco Bueno and snack food manufacturers Sahale Snacks and Wise Foods.
The same day, in the UK, Hermes Private Equity bought into the Symington's Group in a deal reported to be worth some USD 80 million. Symington's - which has already undergone a round of leveraged buyouts and management buy-ins - makes a variety of products best known under the Ainsley Harriott and Crosse and Blackwell brands, mainly ready meals and soups. Some 70% of the Group's sales are accounted for by retail brands.
Buyout funds and their portfolio companies are also avidly circling around Unilever spinoffs and potential spinoffs, with e.g. the Blackstone-owned Pinnacle Foods reported to be interested in acquiring Unilever's Lawry's seasoning business.