The Hillshire Brands Company (NYSE: HSH) and Catterton Partners, the
leading consumer-focused
private equity firm, today announced that Hillshire Brands has
signed a definitive agreement to acquire Catterton portfolio company
Van’s Natural Foods. Van’s is a leading better-for-you food brand that
delivers great taste, nutrition, simple/clean ingredients and all-family
appeal across multiple product lines in frozen breakfast and snack
foods. Hillshire Brands will pay $165 million for Van’s, which is
expected to have net revenues of approximately $60 million in calendar
year 2014. The transaction is expected to close in May of 2014 pending
regulatory clearance.
“The Van’s brand is a terrific addition to our portfolio,” said Sean
Connolly, president and chief executive officer, The Hillshire Brands
Company. “Not only does it expand our presence in the frozen category,
it also gives us a proven health and wellness brand with extendability
beyond frozen.”
Van’s Natural Foods will become part of Hillshire Brands’ Retail
segment, pairing with well-known brands such as Jimmy Dean, Hillshire
Farm and Ball Park. Van’s Natural Foods’ management will
continue to lead the business.
“As a leader in branded foods including breakfast products, Hillshire
Brands is an ideal strategic partner for Van’s,” said Eric Kufel, CEO,
Van’s Natural Foods. “Our positioning in the large and growing wellness
consumer lifestyle segment is a perfect complement to Hillshire Brands’
product portfolio. We are pleased to have worked with Catterton, which
helped drive our significant growth and market expansion into multiple
new categories. I am truly excited to be joining with Hillshire and
beginning the next phase of Van’s growth journey.”
Van’s Natural Foods is based in Phoenix and is a leading simple/clean
ingredient food brand in frozen breakfast and snack foods including
waffles, pancakes, cereal, crackers and snack bars. Van’s frozen
breakfast and snack foods are available at grocery stores, mass
merchandise stores and natural food retailers nationwide.
Marc Magliacano, a Partner at Catterton, said, “We are proud of the
brand and distinctive market positioning that we and the Van’s
management team have created over the past few years. This transaction
is a win for all parties involved and we are confident and excited that
under Hillshire's ownership Van’s will continue to experience
significant growth and capitalize on new opportunities.”
Centerview Partners served as financial advisor and Stinson Leonard
Street served as legal advisor to Hillshire Brands. Houlihan Lokey
served as financial advisor and Gibson Dunn & Crutcher served as legal
advisor to Van’s in connection with the transaction.
About The Hillshire Brands Company
The Hillshire Brands Company (NYSE: HSH) is a leader in branded foods.
The company generated approximately $4 billion in annual sales in fiscal
2013, has more than 9,000 employees, and is based in Chicago. Hillshire
Brands’ portfolio includes iconic brands such as Jimmy Dean, Ball
Park, Hillshire Farm, State Fair, Sara Lee
frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells,
Gallo Salame and Golden Island premium jerky. For more
information on the company, please visit www.hillshirebrands.com.
About Van’s
Van’s Natural Foods, based in Phoenix, is the leading foods brand in
gluten-free and allergy-friendly, frozen breakfast and snack foods
including waffles, pancakes, cereal, crackers and snack bars. Van’s
frozen breakfast and snack foods are available at grocery stores, mass
merchandise stores and natural food retailers nationwide. For more
information, please visit www.vansfoods.com.
About Catterton Partners
Catterton Partners is the leading consumer-focused private equity firm
with more than $4.0 billion currently under management and a twenty-five
year track record of success in building high growth companies. Since
its founding in 1989, Catterton has leveraged its category insight,
strategic and operating skills, and network of industry contacts to
establish one of the strongest private equity investment track records
in the middle market. Catterton Partners invests in all major consumer
segments, including Food and Beverage, Retail and Restaurants, Consumer
Products and Services, Consumer Health, and Media and Marketing
Services. Catterton's investments include: Kettle Foods, Wellness and
Nature’s Variety Pet Food Companies, Odwalla, CorePower Yoga, Sweet Leaf
Tea, Restoration Hardware, Outback Steakhouse, Noodles & Company, PIADA,
Pirch, Frederic Fekkai, Build-A-Bear Workshop, and P.F. Chang’s, to name
a few. More information about Catterton Partners can be found at www.cpequity.com.
Forward-Looking Statements
This release contains forward-looking statements regarding Hillshire
Brands' business prospects and future financial results and metrics.
Forward-looking statements are typically preceded by terms such as
“will,” “anticipates,” “intends,” “expects,” “plans,” “likely” or
“believes” and other similar terms. These forward-looking statements are
based on currently available competitive, financial and economic data
and management's views and assumptions regarding future events and are
inherently uncertain.
Investors must recognize that actual results may differ from those
expressed or implied in the forward-looking statements, and the company
wishes to caution readers not to place undue reliance on any
forward-looking statements. Among the factors that could cause Hillshire
Brands' actual results to differ from such forward-looking statements
are those described under Item 1A, Risk Factors, in Hillshire Brands'
most recent Annual Report on Form 10-K, as well as factors relating to:
-
The consumer marketplace, such as (i) intense competition, including
advertising, promotional and price competition; (ii) changes in
consumer behavior due to economic conditions, such as a shift in
consumer demand toward private label; (iii) fluctuations in raw
material costs, Hillshire Brands' ability to increase or maintain
product prices in response to cost fluctuations and the impact on
profitability; (iv) the impact of various food safety issues and
regulations on sales and profitability of Hillshire Brands' products;
and (v) inherent risks in the marketplace associated with product
innovations, including uncertainties related to execution and trade
and consumer acceptance;
-
Hillshire Brands' relationship with its customers, such as (i) a
significant change in Hillshire Brands' business with any of its major
customers, such as Wal-Mart, its largest customer; and (ii) credit and
other business risks associated with customers operating in a highly
competitive retail environment;
-
Hillshire Brands' spin-off of its international coffee and tea
business in June 2012, including potential tax liabilities and other
indemnification obligations; and
-
Other factors, such as (i) Hillshire Brands' ability to generate
margin improvement through cost reduction and productivity improvement
initiatives; (ii) Hillshire Brands' credit ratings, the impact of
Hillshire Brands' capital plans on such credit ratings and the impact
these ratings and changes in these ratings may have on Hillshire
Brands' cost to borrow funds and access to capital/debt markets; and
(iii) the settlement of a number of ongoing reviews of Hillshire
Brands' income tax filing positions and inherent uncertainties related
to the interpretation of tax regulations in the jurisdictions in which
Hillshire Brands transacts or has transacted business.
Copyright Business Wire 2014