Kainos to buy EOS-Partners-backed Country Fresh

Kainos Capital is buying Country Fresh Inc, which is backed by EOS Partners, according to two sources.

Financial terms were unclear. Country Fresh, Conroe, Texas, produces fresh-cut fruit and vegetables, including sliced apples, carrots and celery, that are sold in supermarkets. SunTrust Robinson Humphrey is providing financing, one source said.

EOS Partners invested in Country Fresh in 2011, taking a minority stake. EOS, New York, targets lower-middle-market companies in sectors including consumer, healthcare services and business services. The PE firm will typically invest $20 million to $100 million equity per deal.

Kainos is the former food and consumer products group of Hicks, Muse, Tate & Furst, which changed its name to HM Capital in 2006. In 2013, HM Capital began winding down; the food and consumer products group spun off as Kainos, Buyouts reported.

Kainos invests exclusively in the food and consumer sector. The firm last year closed its second fund with $895 million in commitments. This was nearly double Kainos’s inaugural pool, which collected $475 million in 2013.

The Dallas private equity firm is known for its buy of Slim-Fast from Unilever in 2014. Last year, Kettle Cuisine, a Kainos portfolio company, acquired Del Monaco Foods. Kainos in 2014 also bought InterHealth Nutraceuticals, which scooped up Chick Cart later that year.

Executives for Kainos and SunTrust declined comment. EOS couldn’t be reached for comment.

Action Item: Contact Sarah Bradley, a Kainos partner: sbradley@kainoscapital.com