2x Consumer Products Growth Partners has sold its stake in Preferred Brands International while Kagome Co. Ltd has acquired a majority stake in it. No financial terms were disclosed. Barclays was financial advisor to Preferred Brands on the transaction. Based in Stamford, Connecticut, Preferred Brands is a maker of food products under the TASTY BITE brand.
Chicago, IL – 2x Consumer Products Growth Partners (“2x Partners”) announced today it exited its investment in Preferred Brands International, Inc. An announcement was made previously to the Nikkei and Bombay stock exchanges that Kagome Co., Ltd. (TYO: 2811), a large Japanese food and beverage company, received regulatory approval and closed on the previously announced acquisition of the majority interest in Preferred Brands. Management continues to own a significant minority interest.
Based in Stamford, CT, with manufacturing in Pune, India, Preferred Brands is a leading manufacturer and marketer of Indian entrées, Asian noodles and ethnic inspired organic rice products under the TASTY BITE brand. During the term of the investments from 2x Partners, the Company’s revenue approximately doubled while profitability growth exceeded revenue growth.
“We will be pleased to see a global industry leader like Kagome take Tasty Bite to the next level,” said Andrew Whitman, Managing Partner at 2x Partners. “We wish the Tasty Bite team continued success.”
The 2x Partners team included Whitman and Vice President Kim Anne Starke and were supported by Managing Partner Sharon Kieffer, Vice President Mike Apostal and several of the firm’s Industry Venture Partners.
Barclays acted as exclusive financial advisor to Preferred Brands. The Giannuzzi Group, LLP and Horwood Marcus & Berk Chartered provided legal counsel to the Company and the investors, including co-investor RC/Fontis, respectively.
2x Consumer Products Growth Partners joins with founders and management of emerging consumer products businesses capable of growing exponentially via an infusion of capital and management expertise.