The owner of US-based avocado products maker Chosen Foods is reportedly considering selling the business for over $600m. Los Angeles-based private-equity firm Butterfly Equity, which acquired a majority stake in Chosen Foods in 2021, is exploring the possibility of selling the company, as reported by Reuters.
Chosen Foods is collaborating with investment banks Morgan Stanley and Bank of America on its sale process, expected to commence later this year. The avocado oil maker generates full-year EBITDA of approximately $50m, according to Reuters.
Butterfly Equity declined to comment when approached. Established in 2016 by co-CEOs Dustin Beck and Adam Waglay, the Beverly Hills-based investor executed a $500m-plus deal for Bolthouse Farms a few years after launching its initial fund in 2017.
With more than $4bn in assets under management through blind-pool funds and co-investment, Butterfly Equity is currently focused on North America. Their portfolio includes avocado cooking oil, dairy ingredients, fish farming, fruit juices, fresh vegetables, as well as vitamins, minerals, and supplements (VMS).
In an interview last month, Beck discussed the firm’s selling strategy, stating, “On exits, we have some companies that are performing really well. I wouldn’t be surprised if we have another one or two exits this year.” He added, “A lot of those have at least been proactive calls to us on specific assets that motivate us to run a sell-side process – we’re in the middle of one of those right now.”
Chosen Foods, founded in 2011 by Carsten Hagen, George Todd, and Sioma Waisburd, specializes in producing avocado oil, cooking sprays, mayonnaise, dressings, guacamole, and salsa.
