Charlesbank Capital Partners and Partners Group will acquire Hearthside Food Solutions from Goldman Sachs and Vestar Capital Partners.
Headquartered in Downers Grove, Ill., Hearthside produces a range of nutrition bars, cookies, cereals and other baked foods and snacks for some of the world's premier food brands. It operates 25 manufacturing facilities across the U.S. and Europe and employs around 7,900 people.
Following the acquisition, Charlesbank and Partners Group will work closely with Hearthside's management team, led by Rich Scalise, on value creation initiatives. These will include providing customers with an even wider range of product solutions, executing select add-on acquisitions to further expand the business into adjacent industries and geographies, and optimizing existing manufacturing processes.
"By combining flexibility and innovation with quality and scale, we have been able to achieve our vision of transforming Hearthside into one of the leading and fastest-growing companies in the food industry,” said Rich Scalise, Hearthside co-founder, chairman and ceo. “Today, we are delighted to be welcoming Partners Group and Charlesbank as partners for the next chapter of our success story and would like to thank Goldman and Vestar for their valuable partnership over the last few years."
In October, Hearthside acquired Standard Functional Foods Group, the privately-held snack bar division of Nashville, Tenn.-based Standard Candy Co. In 2015, the company acquired VSI, the largest European producer of nutrition, diet and functional bars. And, in a separate deal, Hearthside acquired a U.S. production facility in Boise, Idaho, from a subsidiary of Post Holdings, Inc.
"We are thrilled to partner with Rich and his team as they embark on the next chapter of Hearthside's growth,” Charlesbank Managing Director Ryan Carroll said. “The track record they've established since founding the Company in 2009 is truly impressive. Further, we know from our extensive experience in the industry that Hearthside has a reputation for providing the highest levels of service and quality to its customers, many of whom have worked with the company for years. We look forward to building on this legacy."
Hearthside Food Solutions ranked No. 40 in Candy Industry’s 2018 Global Top 100, with a projected fiscal 2017 revenue of $487 million.