Charlesbank and Partners Group agree to acquire Hearthside in US

US-based private equity investment firm Charlesbank Capital Partners (Charlesbank) and Swiss investment management company Partners Group have agreed to acquire Hearthside Food Solutions (Hearthside) from Goldman Sachs and Vestar Capital Partners.

Financial details of the deal have not been disclosed.

The two investment firms will execute the acquisition by partnering with Hearthside management.

Hearthside is an independent bakery in Downers Grove, Illinois, which produces a wide range of food products such as nutrition bars, cookies, cereals and other baked goods.

With a workforce of nearly 7,900 employees, Hearthside operates 25 manufacturing facilities across the US and Europe.

Hearthside co-founder, chairman and CEO Rich Scalise said: “By combining flexibility and innovation with quality and scale, we have been able to achieve our vision of transforming Hearthside into one of the leading and fastest-growing companies in the food industry.

“Today, we are delighted to be welcoming Partners Group and Charlesbank as partners for the next chapter of our success story and would like to thank Goldman and Vestar for their valuable partnership over the last few years.”

The deal will see Partners Group and Charlesbank jointly work with Hearthside’s management team and focus on promoting organic growth by creating new food products for the consumers.

In addition to new products, the investment companies will focus on selected add-on acquisitions to further expand the business into adjacent industries and geographies.

Charlesbank managing director Ryan Carroll said: “We are thrilled to partner with Rich and his team as they embark on the next chapter of Hearthside’s growth. The track record they’ve established since founding the company in 2009 is truly impressive.

“Furthermore, we know from our extensive experience in the industry that Hearthside has a reputation for providing the highest levels of service and quality to its customers, many of whom have worked with the company for years. We look forward to building on this legacy.”