Wind Point Partners to merge Hearthside Food Solutions and Ryt-way Industries in US

US-based private equity firm Wind Point Partners has announced plans to merge two of its portfolio companies – Hearthside Food Solutions and Ryt-way Industries – a move which will create the leading contract food manufacturer in North America with more than $1bn in sales.

The merger is expected to take effect later this month and the combined entity will have 19 manufacturing facilities across seven states in the US.

Wind Point Partners acquired Hearthside in April 2009 and Ryt-way in August 2008.

Ryt-way Industries provides contract packaging services and various primary and secondary dry food packaging solutions in North America.

It packages products such as snacks, sweeteners, meals and entrees, bakery items and cereals, and operates seven production facilities across four states.

Hearthside Food Solutions is involved in the contract manufacturing of grain-based food and snack products for food companies.

The company offers breakfast bars, cookies, croutons, pretzels, snacks, and cereals, and provides custom processing and packaging services. It operates 12 food manufacturing facilities in five states.

Under Wind Point’s ownership, Hearthside and Ryt-way each completed three acquisitions, which further diversified each company’s customer base and product portfolio.

Wind Point managing director Mark Burgett said: "By combining two industry leaders, we are able to create significant growth opportunities for the business in addition to value for our investors."

"Given the similarities between the businesses, we expect to start realising benefits immediately," Burgett added.

Hearthside Food Solutions CEO Rich Scalise said: "Hearthside and Ryt-way have a complementary customer base and supply chain capabilities."

"The combined company will be not only significantly larger but also able to deliver a wider array of services," Scalise added.

Rich Scalise, who most recently served as president of Ralcorp Frozen Bakery Products, will take up the role of chief executive officer for the combined entity.

Ryt-way CEO David Finch said that by offering a broader suite of capabilities, Hearthside and Ryt-way will become a one-stop shop for contract manufacturing.

Earlier this week, Hearthside Food Solutions entered into a definitive agreement to sell its branded and private label cereal, granola and snacks business to Post Holdings in an all-cash deal worth $158m.

Wind Point Partners is a private equity investment firm that manages commitments of approximately $2.5bn.