Stir Foods and Pacifica Foods, a portfolio company of Wind Point Partners, said Sept. 5 that it acquired Sabra Dipping Co’s salsa business. Financial terms weren’t announced. The deal includes the Santa Barbara and Chachies brands. The salsa business is based in Oceanside, California. BMO Harris Bank NA and Antares Capital provided financing. Reed Smith served as legal counsel to Wind Point. Corporate Fuel Advisors served as financial adviser while Hunton Andrews Kurth was the attorney for Sabra.
Orange County, CA, September 5, 2018 – Wind Point Partners and portfolio company Stir Foods and Pacifica Foods (“Stir-Pacifica” or the “Company”), a leading custom manufacturer of soups, sauces, dressings, and fresh salsas for both retail and foodservice customers, are pleased to announce that Stir-Pacifica has acquired Sabra Dipping Company’s salsa business (“Sabra Salsa”) based in Oceanside, CA. The acquisition includes the Santa Barbara and Chachies brands, which will continue to be produced at the Oceanside facility, and the Sabra brand salsa, which will be phased out.
The acquisition of the Sabra Salsa business, including the SQF Level 2 Oceanside manufacturing facility and strong workforce, enhances the Company’s salsa manufacturing capabilities and adds capacity to support the continued growth of Stir-Pacifica.
Milt Liu, CEO of Stir-Pacifica, expressed, “I am delighted to welcome the Sabra Salsa business and its employees to Stir-Pacifica. In this new phase, we are confident that together we will be able to accelerate growth and create value for all our stakeholders.” Liu added, “The combination of these two refrigerated salsa operations is highly complementary and will enable us to better serve our combined customer bases through enhanced R&D and new packaging formats. Additionally, the facility in Oceanside is well-invested and its workforce has a strong food safety and quality culture. This is an excellent addition to Stir-Pacifica.”
Joe Lawler, Principal with Wind Point Partners, stated, “The acquisition of the Sabra Salsa business fits squarely with our value creation plan. This investment will accelerate our ability to grow with our customers through more diversified manufacturing capabilities and continued investment in innovation.”
“We are proud of the people and the products they produce at Oceanside and are pleased the salsa business has been acquired by such a highly regarded organization,” said Tomer Harpaz, Sabra CEO. “At Sabra Dipping Company, our focus will continue to deepen around hummus as consumers increasingly embrace this plant-based, feel good food for everyday use.”
Wind Point Partners acquired Stir-Pacifica in December of 2017 in partnership with Milt Liu, a more than 20-year veteran of the food industry. In cooperation with Milt and management of Stir-Pacifica and Sabra Salsa, Wind Point will seek to continue growing the Stir-Pacifica platform through a combination of organic growth and innovation, as well as additional complementary acquisitions like Sabra Salsa.
BMO Harris Bank N.A. and Antares Capital led financing for the transaction. Reed Smith served as legal counsel to Wind Point. Corporate Fuel Advisors served as financial advisor and Hunton Andrews Kurth served as legal counsel to Sabra.
About Stir Foods and Pacifica Foods
Stir Foods and Pacifica Foods is a custom manufacturer of soups, sauces, dressings, and fresh salsas for both retail and foodservice customers. Founded in 2000, the Company is headquartered in Orange County, California. Stir Foods and Pacifica Foods currently operate four SQF production facilities.
Additional information about Stir Foods and Pacifica Foods can be found at www.stirfoods.com and www.pacificafoods.net
About Wind Point Partners
Wind Point Partners is a leading Chicago-based private equity investment firm with approximately $2 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point is currently investing out of Wind Point Partners VIII, a $985 million fund that was initiated in 2016.
Additional information about Wind Point is available at www.windpointpartners.com.
About Sabra Dipping Company, LLC
Sabra makes America’s best-selling hummus. With more than a dozen varieties of hummus, Sabra’s range includes items that are non-GMO, vegetarian, organic, gluten-free, kosher and vegan and can be found nationwide in club stores, supermarkets, specialty retailers, through food service and at online retailers. Sabra proudly dedicates time, energy and resources to the communities in which it operates and in 2016 introduced Plants with a Purpose, an initiative aimed at reducing the impact of food deserts through improved education and access to fresh produce in underserved neighborhoods. Sabra, headquartered in NY, is a joint venture between PepsiCo and Strauss Group that sells refrigerated dips and spreads in North America.