Sponsor-to-Sponsor Scoop: Windjammer Capital In Talks To Buy Pasta Co.

Windjammer Capital Investors LLC is in talks to buy S.T. Specialty Foods Inc., a Brooklyn Park, Minn.-based maker of pasta and rice dishes, from Swander Pace Capital, according to a regulatory filing and an official at Windjammer Capital.

Windjammer Capital will make the investment out of Windjammer Senior Equity Fund III LP, a $575 million vehicle it closed in July 2006. Robert Bartholomew, chairman of the Newport Beach, Calif.-based mid-market buyout shop, said through an assistant that the deal hadn’t closed yet but declined to comment further. The firm typically invests between $20 million and $100 million of equity or subordinated debt in companies that generate more than $8 million of operational earnings.

Swander Pace bought the 16-year-old company in March 2002. S.T. Specialty Foods sells macaroni and cheese dinners, add-meat skillet dinners, boxed pasta, and pasta salads to food retailers and wholesalers.

If the sale goes through, the exit will come out of SPC Partners II LP, a $220 million fund the San Francisco-based firm closed in 2000.

The rest of this article is available at the Web site for Buyouts magazine, where this story originally appeared and Bernard Vaughan is an Associate Editor.