SunTx Capital Partners has sold Carolina Beverage Group, a specialty-sized can producer for numerous beverage brands, to Brynwood Partners. No financial terms were disclosed. Cascadia Capital LLC provided financial advice to Carolina Beverage and SunTx Capital Partners on the deal. According to a source familiar with the deal, the transaction generated an approximate 26 percent IRR and a slightly more than 3X return on invested capital.
DALLAS, Texas, May 16, 2018 – SunTx Capital Partners, a Dallas, TX based private equity firm that invests in middle market manufacturing, distribution and service companies, today announced the sale of Carolina Beverage Group to Brynwood Partners. Financial terms of the transaction were not disclosed.
Founded in 1997, Carolina Beverage Group has transformed over the years from a brewer of high-end craft beers to a premier manufacturer of iconic national and international beverage brands. With an emphasis on high-quality contract beverage manufacturing in specialty-sized cans and packaging, Carolina’s customers include well-known world-class energy drink, tea, sparkling water, distilled beverage, wine, malt beverage and other functional and ready-to-drink beverage brands.
SunTx acquired a majority interest in Carolina Beverage Group and worked closely with the management team to execute a series of transformational growth and operational initiatives, including a multimillion dollar investment to create a state-of-the-art manufacturing and distribution facility in Fort Worth, TX. With strategic locations in both the Southeast and Southwest, Carolina Beverage Group now offers its broad range of beverage manufacturing capabilities, state-of-the-art laboratory and quality systems, flexible manufacturing processes and efficient warehouse management systems to two of the highest growth regions in the country.
Mark Matteson, Chairman of Carolina Beverage Group and a Partner of SunTx Capital Partners, said,
“We could not be prouder of all that has been achieved at Carolina Beverage Group during our ownership. Working collaboratively with the Company’s management team, SunTx advised on and supported numerous investments and transformative initiatives. Carolina Beverage Group is now a sought after, best-in-class contract filler for a host of international beverage brands, and is well positioned to continue its growth trajectory.”
Andy Kerner, President and CEO, said, “SunTx has been a valuable partner and resource provider during their stewardship. Their strategic vision for Carolina Beverage Group was spot on and their commitment to achieving our mutual goals never wavered. It’s amazing to see what Carolina Beverage Group has become over its 20+ year history—from a brewer of craft beers to a world-class manufacturer of global beverage brands. Importantly, we applaud all of our team members and thank them for their dedication and focus on producing high quality products for our customers. The Company looks forward to its next stage of growth, in partnership with Cold Spring Brewing Company and Brynwood Partners.”
Ned N. Fleming, III, Founder and Managing Partner of SunTx Capital Partners, said, “Today is a great day for Carolina Beverage Group, SunTx, and our investors—representing the embodiment of what it means to build a business. We made a majority ownership investment in a North Carolina-based beverage business that had a good portfolio and strong customer relationships. We knew that the functional beverage industry was poised for accelerated growth and believed that Carolina Beverage Group could become a leading platform in the space. By working in partnership with management and employees, we built a best-in-class business that produced excellent returns for all stakeholders. SunTx looks forward to continuing to build businesses, with integrity and passion.”
Cascadia Capital LLC served as exclusive financial advisor to Carolina Beverage and SunTx Capital Partners. Haynes and Boone, LLP provided external legal counsel.
ABOUT CAROLINA BEVERAGE GROUP
Carolina Beverage Group, LLC is a world-class co-packing specialty-sized can producer for numerous national international beverage brands. Our customers include the who’s who in the beverage world, including makers of well-known malt beverages, distilled spirits, energy drinks, tea’s, functional and other ready-to-drink beverages. Our facilities offer elite quality programs supported by state-of-the-art laboratories, high speed production, flexible manufacturing and the very best in warehouse management systems – with a capacity to produce over 60 million cases annually. More information about Carolina Beverage can be found at www.carolinabeveragegroup.com.
ABOUT SUNTX CAPITAL PARTNERS
SunTx Capital Partners, LP, is a Dallas, TX-based private equity firm that invests in middle market manufacturing, distribution and service companies. SunTx specializes in supporting talented management teams in industries where SunTx can apply its operational experience and financial expertise to build leading middle-market companies with operations typically in the Sun Belt region of the United States. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds. More information about SunTx can be found at www.suntx.com.