Shearer’s Foods Inc., a maker and distributor of branded and private-label snack foods, has agreed to acquire rival Snack Alliance. No financial terms were disclosed. Shearer’s Foods is a portfolio company of Mistral Equity Partners.
Shearer’s Foods, Inc. (“Shearer’s”), a leading producer and distributor of high quality branded, contract pack and private label seasoned snack foods, announced today that it has signed a definitive agreement to acquire Snack Alliance, Inc. and its Canadian affiliate (collectively, “Snack Alliance”), one of the fastest growing branded, contract pack and private label snack producers in North America. Completion of the transaction will be subject to customary regulatory approval.
“The combination of Shearer’s and Snack Alliance will create a leading North American supplier of private label and contract pack salty snack products, complemented by the high-growth riceworks® brand,” commented Robert J. Shearer, Chairman and CEO of Shearer’s. “The product manufacturing capabilities and geographic diversity of the combined companies will enable us to service our customers even more effectively.”
John Frostad, CEO of Snack Alliance, who will join the Shearer’s senior management team as Vice Chairman of Shearer’s and President – Canadian Operations, said, “I am very excited about this opportunity and the potential of the Shearer’s – Snack Alliance combination. We have tremendous respect for the Shearer’s team and look forward to broadening the Shearer’s product innovation capabilities and providing increased distribution proximity for our customers.”
Shearer’s is majority owned by Mistral Equity Partners, a private equity firm focused on the consumer, retail and consumer-focused media sectors. Snack Alliance is owned by Trimin Capital, a Canadian private equity firm, and members of the company’s management team. Rabo Securities USA, Inc. acted as exclusive sell-side Financial Advisor to Snack Alliance.
“The Snack Alliance acquisition will greatly enhance the scale, scope, and product development capacity of the Shearer’s organization. The resulting company will be uniquely positioned to support its private label and contract manufacturing partners on a nationwide basis and will benefit from the substantial growth expected in these segments,” noted Andrew Heyer, Managing Partner of Mistral Equity Partners.
About Shearer’s Foods, Inc.
Founded in 1974, Shearer’s employs approximately 900 associates in nine locations including four manufacturing plants and five distribution facilities. The company has a comprehensive offering of branded and private label snack foods including a complete line of potato chips, tortilla chips, pretzels, cheese curls/puffs, peanuts, popcorn, corn chips and other snacks, which are distributed throughout the Midwest, New England and parts of Canada. Shearer’s has received numerous honors and awards from industry associations and customers.
About Snack Alliance, Inc.
Founded in 2000, Snack Alliance employs over 400 associates across the United States and Canada. The company produces a host of private label, contract pack and branded snack products including potato chips, tortilla chips, cheese puffs, and popcorn. Through its national platform, Snack Alliance has consistently been ranked as one of the most innovative snack food companies in North America.
About Mistral Equity Partners
Mistral Equity Partners is a private equity firm comprised of highly experienced investment professionals and seasoned industry executives. The firm specializes in the consumer products and services and retail sectors, and is especially attracted to businesses that are supported by strong demographic trends and fundamental changes in consumer preferences.