The US private-equity firm Brynwood Partners is reportedly working with advisers on the possible sale of local baking-products supplier Hometown Food Company. According to Reuters, Brynwood has hired US-based investment bank Houlihan Lokey as an advisor. Brynwood chairman and CEO Henk Hartong III was approached for comment by Just Food but had not responded at the time of writing.
Hometown Food Company was formed by Brynwood in June 2018 to acquire a portfolio of brands from JM Smucker. In January last year, Brynwood added to the business with the acquisition of pancake and waffle mix brand Birch Benders from US manufacturer Sovos Brands.
Hartong III said in an interview with Just Food, “Brynwood is actively trying to sell companies in our portfolio” without disclosing the identity of the assets.
The buy-out house closed its ninth – and largest fund – last year, raising $750m. Brynwood has six food and drinks companies in its portfolio, including Hometown, Buitoni Food Company, Harvest Hill Beverage Company, and West Madison Foods. The private-equity firm set up West Madison Foods last year when it bought the Marie’s salad dressings brand and the Dean’s dip business from US manufacturer Ventura Foods.
Hartong III stated, “We’re out actively looking for new platforms and, in Brynwood IX, we have our first [investment] with West Madison. We hope to have one to two more done within the next six to nine months. We have a couple in our sights that we think we can get done. I’d say I’m also looking to divest a few of our businesses, so I think, depending on the size of each of the platforms, eight is probably the upper end. In our model, you got to cover your companies. It’s very rare that we have everybody in the office. Typically, we’re out on the road visiting our customers or our factories or corporate offices and so forth.”
The Reuters report comes amid significant food and beverage industry trends and constant shifts in food and drink consumer trends. With these changes, businesses in the food and drink industry are constantly evolving to stay competitive and meet the demands of the market.
