Goldman, Vestar to buy Hearthside Food from Wind Point Partners

Wind Point Partners has agreed to sell Hearthside Food Solutions to Goldman Sachs and Vestar Capital. Financial terms weren’t announced. Downers Grove, Ill.-based Hearthside Food is an independent bakery and a full service contract manufacturer of grain-based food and snack products. Barclays provided financial advice to Wind Point Partners and Hearthside Food Solutions.

PRESS RELEASE
Chicago, IL, March 19, 2014 — Wind Point Partners, a private equity investment firm based in Chicago, announced today that it has entered into a definitive agreement to sell portfolio company Hearthside Food Solutions to Goldman Sachs and Vestar Capital.

Hearthside Food Solutions was Wind Point’s first acquisition in its most recent fund, Wind Point VII. Wind Point formed Hearthside in April 2009 in partnership with food industry veteran Rich Scalise, whose previous experience included serving as President of Ralcorp Frozen Bakery Products, a division of Ralcorp Holdings, Inc. (NYSE: RAH), after spending 18 years with ConAgra Foods (NYSE: CAG) in a variety of roles including his last position as President and COO of ConAgra’s $3 billion Refrigerated Foods Division.

Rich Scalise commented, “Over the past five years Hearthside has more than tripled in size. We’ve broadened our product capabilities, significantly expanded our footprint to 20 facilities in eight states, and developed new customer relationships with high-growth, recognized consumer brands. Wind Point has been an involved and supportive partner throughout.”

Under Wind Point’s ownership, Hearthside completed four add-on acquisitions to create the leading contract food manufacturer in North America with over $1 billion in sales.

Mark Burgett, a managing director at Wind Point, said, “Together Rich and Wind Point successfully re-positioned a small carve-out of a family business as an industry leader with a reputation as a focused, fast and flexible partner. Rich executed on the plan to create value that we established at the outset of the investment, and he is an excellent example of why Wind Point partners with top caliber CEOs to drive value creation at our portfolio companies.”

Advisors for the transaction: Barclays served as exclusive financial advisor to Wind Point Partners and Hearthside Food Solutions; DLA Piper acted as the legal advisor to Wind Point Partners; KPMG LLP provided accounting services in connection with the transaction.

About Wind Point Partners
Wind Point Partners is a private equity investment firm that manages commitments of approximately $2.5 billion. Wind Point focuses on partnering with top caliber CEOs to acquire middle market businesses where we can establish a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.

About Hearthside Food Solutions
Hearthside Food Solutions, headquartered in Downers Grove, Ill., is the nation’s largest independent bakery and a full service contract manufacturer of high quality grain-based food and snack products for some of the world’s leading premier brands. Hearthside operates 20 food manufacturing facilities in eight states. For more information on Hearthside Food Solutions, visit www.hearthsidefoods.com.

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