Brynwood Partners

Brynwood Partners
IndustryPrivate equity
Founded1984; 40 years ago (1984)
FounderHendrik J. Hartong, Jr.
HeadquartersGreenwich, Connecticut, U.S.
Key people
Hendrik J. Hartong III
Chairman &CEO
Ian B. MacTaggart President & COO
Nicholas DiCarlo CFO
Guy Einav CCO
ProductsLeveraged buyout, Growth capital
Total assets$250 million
WebsiteBrynwood Partners
Footnotes / references
[1]

Brynwood Partners is an American private equity investment firm focused on leveraged buyout and other control investments.

Since its founding in 1984, the firm, headquartered in Greenwich, Connecticut,[2] has raised five investment funds, including a $250 million fund in 2005. Through these funds, the company owns firms and brands including Juicy Juice, Balance Bar,[3] and Pearson's Candy Company (Nut Goodie, Salted Nut Roll, Mint Patties, Bun Bars and Bit-O-Honey).

The company's managing partners include Hendrik "Henk" J. Hartong, Jr. (co-founder),[4] who managed Air Express International in the mid-1980s until its 1.15-billion-dollar acquisition by Deutsche Post in 1999. Other managing partners include Hendrik J. Hartong III, Ian B MacTaggart, Dario U. Margve, Kevin C. Hartnett, Joan Y. Mccabe and Nicholas DiCarlo (CFO).[citation needed]

Investments

In 1988, Brynwood Partners purchased Richelieu Foods,[5] a supplier of private-label food products and frozen pizzas.[2] The company produces over 50 million frozen pizzas[6] and more than 20 million finished crusts[7] annually, reporting more than $200 million in yearly sales,[6] and producing private label products for companies including Aldi, Save-A-Lot,[5] Shaw's Supermarkets,[6] Hannaford Brothers Co.,[6] BJ's Wholesale Club and Sam's Club.

In 2004, Brynwood acquired New York-based freight forwarder IJS Global Inc.[8]

In 2004, Brynwood Partners sold Lincoln Snacks Company,[9] which made Fiddle Faddle, Screaming Yellow Zonkers and Poppycock.[3]

In 2014, Brynwood Partners acquired the Juicy Juice brand and business from Nestlé.[10][11]

In 2018, Brynwood Partners bought the Funfetti, Hungry Jack, Martha White, Pillsbury and Jim Dandy baking brands from The J.M. Smucker Company for $375 million, "Brynwood created Hometown Food" to run that asset.[12] In October 2019, Hometown Food acquired grain-based foods manufacturer Arrowhead Mills and baking and confectionery manufacturer SunSpire from Hain Celestial Group for $15 million. The deal includes a manufacturing plant in Hereford, Texas.[13]

Pearson's Candy

In 2011, Brynwood acquired Pearson's Candy Company, which was founded in 1909 in Saint Paul, Minnesota.[14] One of the world's 100 largest confectionery companies,[15] Pearson's makes Pearson's Mints, Salted Nut Rolls, Nut Goodies, Bun Bars and Bit-O-Honey.

Former Investments

High Ridge Brands

High Ridge Brands is the owner of Coast, Zest, Vo5, Rave, White Rain (2012-2021), L. A. Looks, Salon Graphix, Thicker Fuller Hair, Zero Frizz hair products and Dr. Fresh, Firefly, Reach oral health products and Binaca breath freshening products.

In June 2016, Clayton, Dubilier & Rice acquired a controlling stake in High Ridge Brands.

DeMet's Candy Company

In 2003, Brynwood bought Pretzel Flipz, a line of yogurt-covered pretzels made in Mohnton, Pa., from Nestlé.

In 2007, Brynwood bought the "Turtles" brand from Nestle USA Inc.,[3] acquiring at the same time the 280,000-square-foot (26,000 m2) Turtles production facility in Toronto, Canada — merging the acquisition with a company it owned at the time, Signature Snacks Company.

Subsequently, Brynwood consolidated its portfolio of confectionery acquisitions, which included Stixx, Pretzel Flipz, Treasures, and Turtles, resurrecting the dormant DeMet's Candy Company name. DeMet's started in 1898 as a candy store business and soda fountain shop by George DeMet of Chicago — subsequently creating Turtles candies. After a series of mergers and acquisitions, DeMet’s was purchased by Nestlé in 1988. In 2007, Signature Snacks, then owned by Brynwood, acquired the DeMet’s brand from Nestlé. Former Nestlé USA executive Hendrik Hartong III is chairman of the company. In 2013, Brynwood sold the company to Yıldız Holding.[16]

Stella D'Oro

In 2006, Brynwood bought Stella D'Oro Biscuit Co. from Kraft Foods.[17] On August 4, 2008, workers of the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union went on strike citing proposed pay and benefit cuts and later picketed the company's attempt to bring in replacement workers.[18][19][20][21]

After more than 11 months on strike, the company was required by a court ruling to reinstate the workers. However, shortly thereafter, the company announced in July 2009 that it would close the Kingsbridge, Bronx facility.[22] In September 2009, Brynwood announced the sale of Stella D'Oro to Lance Inc., a large manufacturer of snack foods, which intended to relocate Stella D'Oro's production to a non-union facility in Ashland, Ohio.[23][24]

Brynwood received negative attention for its role in the work stoppage and sale of Stella d'Oro, including a reference in an op-ed piece by the AFL-CIO's Richard Trumka, published in The Wall Street Journal in April 2010.[25]

References

  1. ^ "INVESTMENT TEAM". Brynwood Partners. Retrieved April 7, 2019.
  2. ^ a b "Richelieu Foods Acquires Sara Lee's Sauces and Dressings Foodservice Business". Richelieu Foods Press Release, September 2, 2008. Archived from the original on February 12, 2010. Retrieved June 14, 2010.
  3. ^ a b c "Private Equity Firm Buys Balance Bar Brand From Kraft Foods". Soyatech.com, Connecticut Post, December 6, 2009. Archived from the original on March 3, 2016. Retrieved June 14, 2010.
  4. ^ "BUSINESS PEOPLE; Revived Air Express Picks Chief Executive". The New York Times, Daniel Cuff, January 10, 1989. January 10, 1989.
  5. ^ a b "Richelieu experiences hiring boom, starts expansion". WCFcourier.com, RC Balaban, August 27, 2006.
  6. ^ a b c d "There's new appetite for peddlers of cheap eats". Boston Business Journal, Feb 23, 2009, Lisa van der Pool. February 23, 2009.
  7. ^ "It Takes Two Working in tandem, Richelieu Foods' pizza plants in Ohio and Wisconsin are a productivity powerhouse". Refrigeratedfrozenfood.com. Archived from the original on 2011-07-15. Retrieved 2010-06-14.
  8. ^ "AEI Execs Team IJS". Air Cargo Magazine, November 18, 2005, Vol.4 No. 123. Archived from the original on June 20, 2010.
  9. ^ Beina Xu (November 23, 2009). "40-30-30: It Isn't Some Kind Of Debt/Equity Metric". The Wall Street Journal.
  10. ^ Rothman, Max (2 July 2014). "Nestlé USA unloads stake in Juicy Juice". BevNet. Retrieved 16 March 2018.
  11. ^ Bray, Chad (2 July 2014). "Nestlé to sell Juicy Juice brand to Brynwood Partners". The New York Times. Retrieved 15 March 2018.
  12. ^ Marchat, Alissa (Sep 4, 2018). "J.M. Smucker Co. Closes $375M Deal With Hometown Food Co". The Shelby Report. Retrieved April 7, 2019.
  13. ^ Nunes, Keith (8 October 2019). "Private equity company acquires two brands from Hain Celestial". Baking Business. Retrieved 21 May 2021.
  14. ^ "St. Paul's Pearson's Candy Co. sold". Kare 11. Gannett. August 22, 2011. Archived from the original on January 27, 2013. Retrieved December 29, 2011.
  15. ^ Rogers, Paul (January 1, 2003). "Income generation gap. (Top 100 Global Confectionery Companies)". Candy Industry. The Gale Group, Inc. Retrieved 2008-03-19.
  16. ^ Brynwood Partners to Sell Maker of Turtles Candy Archived January 4, 2014, at the Wayback Machine
  17. ^ Kraft Says Arrivederci to Stella D'Oro. Billboard
  18. ^ Kosman, Josh (May 10, 2009). "Not the Original Recipe". The New York Post, John Koshman, May 10, 2009.
  19. ^ "Stella D'oro Factory to Close in October". The New York Times, July 6, 2009, Jennifer Lee. July 6, 2009.
  20. ^ "Buyer Said to Emerge for Brynwood's Stella D'Oro". The New York Times, August 21, 2009. August 21, 2009.
  21. ^ "No Sweets When Striking the Cookie Factory". The New York Times, Marc Santora, December 26, 2008. December 27, 2008.
  22. ^ "Brynwood considers options for Stella D'oro". Greenwich Times, Richard Lee, September 1, 2009. September 2009.
  23. ^ Stella D'Oro protesters lean on Goldman Sachs. New York Daily News, September 29th 2009
  24. ^ A Last Batch at a Bakery in the Bronx. New York Times, October 6, 2009
  25. ^ Richard Trumka (April 13, 2010). "OP-ED: It's Time to Restrict Private Equity, Too often employees are the losers in leveraged buyouts". The Wall Street Journal.

Further reading