Wind Point Partners considers sale of contract food manufacturer in US

Wind Point Partners, a private equity firm, is evaluating options to sell Hearthside Food Solutions, one of the leading food contract manufacturers and privately held bakeries in the US.

British multinational banking and financial services firm Barclays has been appointed by the private equity firm to oversee the auction process for its portfolio company Hearthside.

Sources were quoted by Reuters as saying that a deal, if finalised, could fetch more than $1bn to Wind Point Partners.

Hearthside Food Solutions is a contract manufacturer of consumer baked foods and snacks products for food companies offering breakfast bars, cookies, croutons, pretzels, snacks and cereals, and provides custom processing and packaging services.

The company operates 20 food manufacturing facilities in eight states with 7,500 staff and, it had earnings before interest, tax, depreciation and amortization (EBITDA) of $120m, the sources added.

Formed in 2009, Hearthside commenced operations with four manufacturing facilities and 2,000 employees and has expanded since through a series of acquisitions.

It is owned by Wind Point in partnership with former Ralcorp Frozen Bakery Products president and ConAgra Foods veteran Rich Scalise, who currently heads Hearthside.

In May this year, Wind Point merged Hearthside and its other portfolio company Ryt-way Industries, to form a $1bn contract food manufacturer in North America.

In the same month, Hearthside completed the sale of its branded and private label cereal, granola and snacks business to Post Holdings in an all-cash deal worth $158m.

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Image: Wind Point Partners appointed Barclays to oversee the auction process for its portfolio company Hearthside. Photo: courtesy of David Arellano.