Food-focused private equity platform Power Sustainable Lios has successfully acquired Crofter’s Organic, a Canadian producer of organic jams, jellies, and fruit spreads.
This strategic partnership also involves co-investments from Farm Credit Canada (FCC), BMO Capital Partners, and the Latka family, who originally founded Crofter’s, as stated by Lios on January 22.
While the financial details of the deal remain undisclosed, Crofter’s Organic CEO Tim Jax emphasized the significance of this partnership: “Partnering with Lios, FCC, and BMO Capital Partners enables us to accelerate our mission of delivering high-quality organic fruit spreads to more households across North America and beyond.”
Lios outlined that this investment aims to support Crofter’s “next phase of expansion.” This expansion will focus on increasing production capacity, enhancing branding through effective marketing, and advancing product development.
Jonathan Belair, managing partner at Power Sustainable Lios, commented on the investment: “Our investment in Crofter’s reflects our conviction in the long-term growth of sustainably oriented food businesses.” He continued by noting that “Crofter’s has built an exceptional brand rooted in quality, organic ingredients, and responsible production.”
This acquisition also signifies the exit of Chicago-based private equity firm Frontenac, which previously acquired a majority stake in Crofter’s Organic in February 2021. In a separate statement, Frontenac confirmed the transaction and highlighted the advancements made during their ownership. They noted, “In the last five years Frontenac and Crofter’s expanded the brand and better-for-you positioning into mainstream channels, scaled the team, upgraded the company’s systems and enterprise-wide processes, and enhanced its innovation and product development capabilities.”
Meanwhile, the Latka family will continue its long-term partnership role within the business.
Founded in 1989, Crofter’s Organic produces organic jams, preserves, and fruit spreads, supplying its products to both its proprietary brand and private-label clients. The company operates an automated production facility located in Parry Sound, Ontario, and distributes its products through major retailers across North America.
As the food and beverage industry trends continue to evolve, this acquisition aligns with the increasing consumer demand for organic and sustainably sourced products, underscoring key trends in the food and drink business.
