Ares Capital has exited its investment in Border Foods Inc., selling the company to Mizkan Americas Inc., a subsidiary of Japan-based Mizkan Group. Terms of the deal, which closed May 12, were not released. Harris Williams & Co. acted as the advisor to Border Foods.
Harris Williams & Co. announces the sale of Border Foods, Inc®, a portfolio company of Ares Capital Corporation (Ares Capital), to strategic buyer Mizkan Americas, Inc., a subsidiary of Japan-based Mizkan Group Corporation (Mizkan). The transaction closed on May 12, 2011. Harris Williams & Co. acted as the exclusive advisor to Border Foods. The transaction was led by Glenn Gurtcheff, Tim Alexander, Jeff Cleveland and Brant Cash from the firm’s Consumer Group in Minneapolis.
“Mizkan has utilized strategic acquisitions of strong segment leaders to diversify its position across existing channels and strengthen its business. Border Foods leadership in the growing market for Hispanic foods offers Mizkan new opportunities to expand the global presence of its retail, branded, food ingredients and foodservice business,” said Tim Alexander, managing director at Harris Williams & Co. Glenn Gurtcheff, managing director and head of Harris Williams & Co.’s Consumer Group added, “We continue to see strong M&A activity across the food and beverage industry and expect strategic and financial buyers to remain highly interested in the sector.”
Border Foods is the nation’s oldest and most established processor of Green Chile, Jalapeño and Tomatillo peppers and enchilada sauces for the ingredient, private label, co-pack, and foodservice end markets. Located in Deming, NM, Border Foods began operations in 1972 and is the largest processor of quality Chile peppers in the United States. Border Foods has demonstrated consistent growth and is the market leader in the industry.
Ares Capital is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, a wholly owned subsidiary of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of March 31, 2011, Ares Management LLC had approximately $40 billion of committed capital under management.
Mizkan, a 200-year old, privately-held global food manufacturer based in Handa City, Japan, is the parent company of Mizkan Americas, Inc. Mizkan Americas is a leading manufacturer of condiments in the United States with 14 manufacturing plants that serve the retail, foodservice, specialty Asian and food ingredient trade channels. Since 2005, Mizkan Americas has seen dramatic growth due to the acquisition of Holland House® cooking wines, the Specialty Foods Division of Imperial Brands and World Harbors Marinades & Sauces. Mizkan Americas produces a wide variety of vinegars, mustards, cooking wines, wine reductions, sushi seasoning, jellies, salad dressings, Asian sauces and other liquid condiments. Mizkan brands include Holland House, NAKANO®, Four Monks®, Barengo®, Mitsukan® and World Harbors®.
Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of sell side excellence serving clients worldwide. The firm is focused exclusively on the middle market providing sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorised and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.