Yasso, known for Greek yogurt on a stick, is said to go to Castanea

Private equity is investing in Yasso Inc, known for its Greek yogurt bars, two sources said.

A strategic buyer was expected to acquire Yasso, which went up for sale in late 2016, Buyouts reported. Piper Jaffray advised on the auction.

Instead, Castanea Partners is investing in the company, sources said. Terms were unclear. Yasso generates $7 million in EBITDA and was seen selling for $150 million, Buyouts said.

Yasso, Quincy, Massachusetts, calls itself “Dessert Disruptors.” The company sells frozen Greek yogurt on a stick in flavors like chocolate chip, cinnamon bun and cookies ’n cream. Most of the bars have only 100 calories and 16 grams of carbohydrates. (Sea Salt Caramel and Toffee Crunch each have 150 calories and 16 grams of carbs.) In March, Yasso introduced frozen Greek yogurt sandwiches in mint and vanilla flavors.

Two childhood friends, Drew Harrington and Amanda Klane, launched the company in 2009, Bloomberg reported in August. Yasso was expected to end 2016 with more than $50 million in sales, the story said.

Castanea, Newton, Massachusetts, targets middle-market companies with revenue between $25 million and $150 million. Sectors include beauty and personal care; apparel, footwear and accessories; food and beverage, and household and juvenile products. The firm typically invests $15 million to $150 million per deal, the website says.

Castanea raised $600 million with its fourth fund in 2015. In March 2016, the firm invested in Jeni’s Splendid Ice Creams. Other deals in 2015 include First Aid Beauty and Proenza Schouler, a luxury fashion brand.

Castanea, Yasso and Piper Jaffray could not immediately be reached for comment.

Action Item: Contact Castanea’s Steven Berg, a managing partner, at sberg@castaneapartners.com

Yasso frozen Greek yogurt sandwiches, mint flavor.  Photo courtesy of the company.