Swander Pace Capital completes sale of Voortman to Hostess Brands
Swander Pace Capital, a private equity firm focused on consumer products companies, has announced that it has completed the previously announced sale of Voortman Cookies Limited to Hostess Brands, Inc. in a transaction valued at approximately $320 million (C$425 million) in cash.
Founded in 1951 by brothers William and Harry Voortman and headquartered in Burlington, Ontario, Voortman is a leading manufacturer of premium, branded wafers as well as sugar-free and specialty cookies with distribution throughout North America and across the world.
Swander Pace Capital acquired a majority stake in the company in 2015, partnering with Harry Voortman and senior management to help the company build upon its market share, distribution footprint, and product offering.
In 2017, the company underwent a total brand relaunch with a new logo and packaging, all-new recipes, and updated flavors. Voortman was able to successfully connect with new consumers and disrupt the dynamics of the category by replacing artificial colors and flavors, as well as high-fructose corn syrups, with only real ingredients.
During the course of Swander Pace’s investment in the company, Voortman significantly expanded its share of the $8.4 billion packaged cookie industry and today remains one of the fastest growing brands of scale in the category.
“It has been a genuine pleasure partnering with management and the Voortman family to help the company reach its full potential,” said Tyler Matlock, director at Swander Pace Capital. “For nearly seven decades, Voortman has demonstrated, time and again, its ability to innovate and grow while delivering consistent quality and service to its customers. We are very appreciative of the immense support provided by Harry Voortman and his team that helped make this relationship a successful one. We believe Hostess will be an exceptional steward of the brand as Voortman continues its trajectory of growth.
The sale represents the latest successful investment by Swander Pace in the baked goods and snack industry, having completed previous transactions with Café Valley, Bäckerhaus Veit, Pineridge Bakery, Ideal Snacks, and Nonni’s. Swander Pace will continue to seek opportunities to partner with companies in these categories and leverage its expertise and playbook to help drive further growth and expansion.