Sovos Brands, a portfolio company of Advent International, has agreed to acquire Birch Benders, a maker of pancake and waffle mixes, toaster waffles, and pancake and baking cups.
Birch Benders’ products include organic, plant-based, non-GMO, protein, paleo, and keto alternatives. The company was founded in 2011 by CEO Matt LaCasse and CMO Lizzi Ackerman and is headquartered in Denver, Colorado.
“We are absolutely thrilled to be joining the Sovos family,” said Mr. LaCasse. “We believe the wealth of experience and resources of the team at Sovos will allow us to reach even more consumers with our delicious, innovative, easy-to-make offerings made with nutrient-rich, quality ingredients.”
Advent formed Sovos (Latin for unique or one-of-a-kind) in January 2017 to acquire Michael Angelo’s Gourmet Foods, an Austin-based producer of frozen Italian entrées with approximately $100 million in annual sales. Advent’s investment strategy with Sovos is to acquire and build one-of-a-kind and high-quality brands in on-trend categories to build a company of scale in the consumer packaged goods industry.
In July 2017, Sovos closed the buy of its second add-on acquisition, Rao’s Specialty Foods, a New York City-based maker of pasta sauce; and in October 2018 Advent merged Noosa Yoghurt, a Bellvue, Colorado-based maker of yogurt that it had acquired in November 2014, into Sovos.
When the Birch Benders acquisition closes, expected during October 2020, Sovos will have products in seven food categories – sauces, yogurt, frozen entrées, pancake & waffle mixes, frozen waffles, soups and dry pasta – and annual retail sales of more than $750 million.
Berkeley, California-based Sovos is led by Todd Lachman, President and CEO; Larry Bodner, CFO; and Bill Johnson, Chairman. Mr. Lachman has a 25-year record as a senior executive at major consumer products companies, including Mars, Del Monte Foods, H.J. Heinz, and Procter & Gamble. Mr. Bodner has over 25 years of experience as an operationally focused financial executive at companies including Big Heart Pet Brands, Del Monte Foods, Walt Disney, and Procter & Gamble. Mr. Johnson was formerly Chairman, CEO and President of H.J. Heinz. He had a 31-year career at Heinz, where he grew top- and bottom-line results across multiple segments to transform the company into a global food industry leader.
“With its absolutely delicious products that deliver against healthy consumer lifestyles such as paleo and keto diets, Birch Benders is the perfect next addition to our growing portfolio of one-of-a-kind brands. Birch Benders shares Sovos’ commitment to making simple and delicious foods that use only the highest quality ingredients,” said Mr. Lachman. “With our proven ability to transform brands by unleashing growth and deepening consumer affinity, we are thrilled to take Birch Benders to a new chapter of growth while diversifying Sovos into new categories.”
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs 195 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $57 billion in assets under management and has completed more than 350 private equity transactions.
Private Equity Professional | August 27, 2020
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