Hearthside Food Solutions, a large, privately held bakery, has acquired Roskam Granola, a co-manufacturing business that produces granola base and range of products, including bars, mixes, and granola nut clusters. Terms of the deal were not disclosed. Hearthside is a portfolio company of Wind Point Partners, which acquired the company in 2009 in partnership with food veteran in partnership with Rich Scalise, who became and remains Hearthside’s CEO.
Hearthside Food Solutions (“Hearthside”), a Wind Point Partners portfolio company, announced today the acquisition of the Roskam Granola business unit including manufacturing operations in Grand Rapids, Mich.
Hearthside, already one of the nation’s largest independent bakeries with 12 existing facilities in six states, is a contract manufacturer of premium snack and convenience foods, including granola bars, croutons, cereals, popcorn and snack mixes, which are produced for leading global consumer product companies.
The Roskam Granola unit is a co-manufacturing business producing granola base and a wide range of products, including bars, mixes and granola nut clusters, and it also co-packages granola products. Previous Hearthside acquisitions include Consolidated Biscuit Company and Golden Temple’s Cereal Division in May 2010.
Mark Burgett, a managing director at Wind Point, stated, “This is a great expansion of the Hearthside platform. It complements the existing granola cereal and bar business as well as the ingredient business. Completing add-on acquisitions was a key part of our value creation plan. With the Roskam Granola acquisition, Hearthside continues to expand its production capabilities and build its profile as the largest co-manufacturing bakery business in North America.”
Wind Point acquired Hearthside in 2009 in partnership with Rich Scalise, who became Hearthside CEO upon acquisition. Scalise is a 33-year veteran of the food industry and most recently served as President of Ralcorp Frozen Bakery Products, a division of Ralcorp Holdings, Inc. (NYSE: RAH). He also spent 18 years with ConAgra Foods (NYSE: CAG) in roles including President and COO of ConAgra’s $3 billion Refrigerated Foods Division.
“This is a strategic acquisition that adds new opportunity for us, and real value for our customers,” said Scalise. “In addition to acquiring needed Midwest granola capacity, we are adding new customers, projects and revenue, as well as extending our manufacturing capabilities. These operations will be a welcome addition to our existing 12 plant network.”
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 IL, is a leading contract manufacturer of high quality grain-based food and snack products for some of the world’s leading premier brands. The privately held company, formed in 2009, operates 13 food manufacturing facilities in six states. More information on the company can be found at www.hearthsidefoods.com.