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ACG to make more than 6x its money with Krave Jerky sale

Alliance Consumer Growth just finished off a strong week.

ACG, which owns a minority stake in Krave Pure Foods, which makes Krave Jerky, expects to make more than 6x its money with the sale of Krave, Buyouts has learned. The Hershey Company said Jan. 29 it would buy Krave. The sale is valued at $200 million to $300 million, Reuters reported.

ACG invested less than $10 million in Krave in late December 2012. Sonoma, Calif.-based Krave offers jerky made from natural beef, pork or turkey. Flavors include pineapple orange beef, lemon garlic turkey and sweet chipotle.

ACG also owns a stake in Shake Shack, which went public last weekShake Shack, known for its milkshakes and burgers, raised $105 million with its IPO and saw its shares more than double its first day of trading. The growth equity firm invested an undisclosed amount in Shake Shack in February 2013. Other investors include Leonard Green & Partners as well as restaurateur Dan Meyer.

ACG didn’t sell shares in the Shake Shack offering. It currently owns 2.2 million shares, or 6.1 percent, a regulatory filing said. Shake Shack’s stock was trading at $42.99 a share Tuesday which means ACG’s holding is valued at about $92.8 million.

The Krave and Shake Shack investments came from ACG’s debut fund, which launched in 2011 with total capital commitments of $44 million. ACG’s second fund collected $90 million last year. Performance data was unavailable for either fund.

ACG provides minority growth capital to consumer, retail and restaurant companies. The PE firm typically invests from $5 million to $15 million equity per deal in companies with at least $5 million to $25 million of annual sales. Other investments include Barkthins and The Honest Kitchen.

Photo courtesy of Krave