Vestar Capital Partners has inked an agreement to acquire a majority stake in Roland Foods. No financial terms were disclosed. The deal is expected to close by the end of September. Wells Fargo Securities served as M&A advisor to Vestar in this transaction while Evercore Partners advised Roland Foods. BMO Capital Markets and GE Capital Markets provided the financing for the transaction. And, although Roland Foods’ CEO and Chairman Charlie Scheidt will continue, the company does expect that a new CEO will be named next year. Based in New York City, Roland Foods is an importer of specialty food products.
NEW YORK, NEW YORK – August 26, 2013 – American Roland Food Corp. (“Roland Foods”) and Vestar Capital Partners (“Vestar”) today announced that Vestar Capital Partners VI, L.P. has signed a definitive agreement to acquire a majority interest in the Roland Foods family of companies, including Bruno Scheidt, Inc., American Roland Food Corp., Pro Warehouse Corp., and Costamar Corp. Terms were not disclosed. The transaction is expected to close by the end of September.
Roland Foods is a recognized leader in the imported specialty foods business in the U.S. and around the globe. “My parents started Roland Foods in the U.S. nearly 75 years ago, and the company has grown consistently over the years with the help of our valued customers, suppliers, and staff,” said Charles E. Scheidt, a member of the company’s founding family and CEO of Roland Foods. “Vestar appreciates and shares our values, as well as our company’s single-minded focus on our brands, quality products, and exceptional and reliable customer service. This evolution enables Roland Foods to build on its excellent foundation.”
“Roland Foods is a great company with a unique niche and superb reputation in the industry, and an exceptional initial investment for our new Vestar VI fund,” said Dan O’Connell, Founder and CEO of Vestar. “Roland Foods is not only performing extremely well but also has impressive potential. Coupled with the bright growth outlook we see in the specialty foods sector, we believe Vestar’s resources and experience in the food and branded products arena can help Roland Foods grow substantially.”
The management team and staff will remain in place. Charlie Scheidt will continue as CEO and Chairman of the Board and will retain a meaningful investment in the company. The company anticipates that a new CEO will be named in the coming year. Roland Foods expects a seamless transition for the suppliers, vendors, and customers, with continuity, stability, and growth being top priorities.
Wells Fargo Securities, LLC acted as the M&A advisor to Vestar in this transaction. Financing for the transaction was provided by BMO Capital Markets and GE Capital Markets. Vestar’s legal advisor was Kirkland & Ellis LLP.
Evercore Partners served as financial advisor to American Roland Food Corp. and McDermott Will & Emery LLP served as legal advisor.
About Roland Foods
Roland Foods, based in New York City, specializes in importing high-quality specialty food products from more than 40 countries. Founded in Paris in 1934 and established in the U.S. in 1939, Roland Foods has provided customers with exceptional specialty foods, under the Roland brand as well as the Don Bruno, Chef Susanna’s, Costamar, and Consul brands. The company has a national presence in the foodservice, retail, and industrial channels as well as international sales in the Caribbean, Central and South America, Asia, Africa, and the Middle East. Roland Foods’ dedication to providing quality and consistency has made it a leader among food importers and suppliers. The Roland brand is synonymous with quality for the consumer and chef alike. For more information about American Roland Food Corp., please visit http://rolandfood.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners in a creative, flexible and entrepreneurial way to build long-term enterprise value.
Vestar is targeting equity investments in the range of $50 million to $200 million in U.S.-based middle-market companies with enterprise values ranging from $100 million to $1 billion. Vestar has extensive experience investing across a wide variety of industries including Consumer, Healthcare, Digital Media, Information Services, Diversified Industries, and Financial Services.
Since Vestar’s founding in 1988, Vestar funds have completed 70 investments in companies with a total value of more than $40 billion. For more information, please visit http://www.vestarcapital.com.