Coming off the successful exit of Nonni's Food, Wind Point Partners acquired Hearthside Food Solutions, a contract manufacturer of granola and cereal products. The funding for the investment came from Wind Point's latest fund, Wind Point VII, which is currently fundraising. Wind Point acquired Nonni's for $90 million in 2004 and later sold the company for $320 million to Vivartia in March 2008.
What is the best way to exit an investment in a food company? Sell to a strategic acquirer like Kraft Foods or Nestle? Take it public? Nope, it turns out that since 2007, 75% of food product companies have been exited via secondary transactions. A secondary transaction is the sale of a company from one PE investor to another PE investor. Secondary transactions accounted for 15 of the 18 food company buyouts since 2007.