Turkey Hill, a portfolio company of Peak Rock Capital, has acquired an ice cream production facility from Yarnell Ice Cream, a subsidiary of Schulze & Burch Biscuit Company.
Turkey Hill produces iced teas, fruit drinks, milk, frozen dairy treats, and a variety of ice cream products that are sold under the Turkey Hill brand in 49 states. The business is led by CEO Tim Hopkins and has nearly 800 full-time, part-time, and seasonal employees with a manufacturing and distribution facility near Lancaster in Conestoga, Pennsylvania.
Peak Rock acquired Turkey Hill in April 2019 from Kroger for total consideration of $215 million. Turkey Hill began as a dairy farm in 1931 and was purchased by Kroger in 1985.
“The addition of this facility in Arkansas highlights the company’s commitment to geographic expansion,” said Mr. Hopkins. “Over the last year, Turkey Hill has experienced strong and growing consumer demand nationwide, and the strategic location of this facility will enable us to serve consumers across the United States for years to come.”
The acquired 100,000 square foot facility is SQF-certified and manufactures ice cream and frozen novelty products across many sizes and formats. The addition of the Searcy, Arkansas-based facility expands Turkey Hill’s production capacity, capabilities, and geographic reach.
“We are delighted that Turkey Hill has closed this acquisition,” said Rob Pistilli, a managing director of Peak Rock. “This investment comes with significant capacity expansion and novelty production capabilities that will enhance Turkey Hill’s brand appeal and ability to service and grow its loyal customer base. We are enthusiastic about Turkey Hill’s progress to-date, and this investment is a testament to Peak Rock’s support of the company’s continued growth and expansion.”
Yarnell’s Ice Cream was founded in 1932 in Searcy, Arkansas and was acquired by Schulze & Burch Biscuit Company through a bankruptcy sale in 2011 for $1.3 million. Headquartered in Chicago, Schulze & Burch is a producer and supplier of snack foods including toaster pastries, granola bars, filled products, cookies, crackers, and cereal bars.
As part of this transaction, Turkey Hill has agreed to continue to produce ice cream for the Yarnell’s brand, which is being retained by Schulze & Burch.
Austin-based Peak Rock makes debt and equity investments of $30 million to $300 million in middle-market companies with revenues from $50 million to $1 billion and enterprise values from $50 million to $750 million. Sectors of interest include business and tech-enabled services, consumer products and services, distribution and logistics, energy, food and beverage, healthcare, industrial manufacturing, metals, and technology.
Private Equity Professional | June 16, 2020
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