The US aseptic products manufacturer, Gehl Foods, is reportedly being explored for a potential sale by its owner, private-equity firm Wind Point Partners. Industry sources have suggested that a deal could bring in over $600m, including debt. Gehl has enlisted William Blair and Bank of Montreal as its financial advisers for the sale process. While potential buyers may include other private-equity companies, the outcome of negotiations regarding the sale of the Wisconsin-based dairy business remains uncertain.
In 2015, Wind Point acquired Gehl Foods, which trades as Gehl Food and Beverage. The co-manufacturer specializes in producing sauces, desserts, soups, broths, coffee creamers, and a variety of drinks. Their portfolio ranges from ready-to-drink dairy products and milk alternatives made from oats, soy, and almonds to wines and spirits. Gehl operates out of three manufacturing facilities located in Lathrop, California; Walterboro, South Carolina; and Germantown, Wisconsin.
The current valuation of Gehl Foods is estimated to be ten times its annual EBITDA, which industry sources project to be around $60m. The company was founded in 1896 by J.P. Gehl and has since become a prominent player in the aseptic dairy segment, supplying its own namesake brand to retail and foodservice markets, as well as private-label customers and contract manufacturers. Serving more than 2,000 US retailers and several global brands, Gehl Foods has established itself as a significant player in the food and beverage industry.
Gehl Foods is led by CEO Craig Lemieux, formerly the president of US food company TreeHouse Foods. In 2018, the company further expanded its portfolio by acquiring California Natural Products (CNP). This strategic acquisition allowed Gehl to offer dairy-based and dairy-alternative beverages, soups, broths, teas, nutritional drinks, and wine and spirits, all packaged in Tetra Pak cartons. Additionally, CNP manufactures specialty rice and soy-based ingredients for consumer food brands.
The potential sale of Gehl Foods presents a significant opportunity for investors and industry players looking to enter or expand their presence in the competitive food and drink business. With its strong portfolio, established manufacturing capabilities, and wide customer base, Gehl Foods is positioned for growth and success in an ever-evolving consumer market.
