Food and Beverage Business
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Private Equity Firm CD&R Finalizes Acquisition of Shearer’s Foods, a Leading US Snacks Company

Private Equity Firm CD&R Finalizes Acquisition of Shearer’s Foods, a Leading US Snacks Company Savoury Snacks Food and Beverage Business

Shearer’s Foods, a US snacks business, is set to be acquired by local investor Clayton Dubilier & Rice (CD&R). CD&R has reached an agreement to purchase Shearer’s from the Ontario Teachers’ Pension Plan (OTPP) fund for an undisclosed amount. This move comes after speculation earlier this year that OTPP was considering a sale, with reports suggesting a potential deal could be worth $3bn.

With the deal confirmed, John Compton, operating partner at CD&R and former CEO of PepsiCo North America, expressed his admiration for Shearer’s and its standing in the industry. The company is seen as a leading business that shares core values, making it an attractive investment. Meanwhile, Shearer’s CEO Mark McNeil is excited about the new phase of growth, with CD&R bringing experience, expertise, and resources to further support the company’s mission of producing high-quality, innovative, and delicious snacks.

Shearer’s Foods, established in the early 1900s, is known for producing a wide variety of snacks, including private-label snacks, cookies, crisps, tortillas, popcorn, pork rinds, and other organic, gluten-free, and non-GMO kosher salty snacks. Its 17 manufacturing facilities across the US and Canada are evidence of its expansive reach in the market.

OTPP initially invested in Shearer’s in 2012 and later acquired a majority ownership stake in 2015. The pension fund’s exit from the business reflects the company’s market leadership in delivering high-quality and innovative products.

Clayton Dubilier & Rice (CD&R) is a privately owned company with a presence in New York and London. It invests in businesses across various industries, including industrial, healthcare, consumer, technology, and financial services end markets.

Throughout this acquisition process, there are clear indications that the food and beverage industry trends are moving towards more private equity investments in established food and drink businesses. The move is in line with the food and drink consumer trends that are focused on high-quality, innovative products, and organic, non-GMO offerings. This acquisition reaffirms the shift towards expanding market presence and quality product delivery in the food and beverage industry.

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