Supplier News / Industry News

U.S. food contract manufacturer Hearthside goes on the block

Wind Point Partners, Chicago, reports that it has asked Barclays plc to run an auction for Hearthside Food Solutions LLC, Downers Grove, Ill., hoping it can fetch more than $1 billion, according to reports. Hearthside is said to have earnings of around $120 million before interest, tax, depreciation and amortization.

Hearthside produces baked foods and snacks out of 20 manufacturing facilities in eight U.S. states for the world's premier food companies, employing more than 7,500 full-time workers, according to its website. Hearthside was created in 2009 by Wind Point and former Ralcorp Frozen Bakery Products president and ConAgra Foods Inc. veteran Rich Scalise, who now serves as Hearthside's chairman and CEO.

Hearthside started with four manufacturing plants and just more than 2,000 employees, but grew quickly through acquisitions. Last May, it was merged with another Wind Point portfolio company that specializes in food packaging, Ryt-way Industries, to create a food contract manufacturer with more than $1 billion in annual sales.

With outsourcing companies looking for greater economies of scale and expanding their offerings to meet the increasingly complex formulation needs of their clients, the fragmented food contract manufacturing sector is expected to see more mergers and acquisitions, cite market reviews from investment banking firm Capstone Partners LLC.

One of the major deals of the year in that market was the $5-billion acquisition of Ralcorp by ConAgra in January, which created the largest private-brand packaged food business in North America. In May, Hearthside agreed to sell Golden Temple, its ready-to-eat cereals and granola making business, to Post Holdings Inc., the company behind the Raisin Bran and Honey Bunches of Oats cereals, for $158 million in cash.

Source: Reuters

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Blue Diamond Almonds Facility

Blue Diamond Almond’s new  processing facility in Turlock, CA.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 August

This month's publication of Snack Food & Wholesale Bakery takes a special look at Blue Diamond's growers and advanced technology, as well as a tour through the Blue Diamond production plant in Turlock, CA.

Table Of Contents Subscribe

School Lunches

Millions of children will soon be returning to school, lunchboxes in hand. What was your favorite lunchbox treat when you were a kid?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon