Shearer’s Foods, a private-label snack maker and co-manufacturer based in Ohio, is reportedly considering a sale of its US snacks business for approximately $3bn, including debt, according to sources familiar with the matter. The majority owner of Shearer’s Foods, the Ontario Teachers’ Pension Plan (OTPP), is said to be working with investment company Goldman Sachs on an auction for the potential transaction, as reported by Reuters and Bloomberg.
In 2015, OTPP acquired a majority ownership stake in Shearer’s Foods, partnering with private-equity firm Wind Point Partners and then chairman and CEO CJ Fraleigh. While OTPP holds the majority stake, Shearer’s Foods’ management retains a meaningful shareholder position, and Wind Point maintains a small interest.
Shearer’s Foods, known for its private-label snacks and co-manufacturing capabilities, produces a range of products including chips, tortillas, popcorn, and pork rinds. It also offers organic, gluten-free, and non-GMO kosher salty snacks. The company recently invested $27.5m in its Waterford plant in Erie, Pennsylvania, and operates production facilities across various locations in the US and Canada.
Industry sources suggest that the business generates more than $250m in EBITDA.