Milling & Baking News - April 1, 2014 - 10

Business 

Continued from Page 1

the merchant banking division at
Goldman Sachs, commended Hearthside for its ability to accelerate its
growth trajectory.
"We are extremely pleased to have
the opportunity to invest in Hearthside and partner with its first class
management team and employees," Ms. Agnew said.
Dan O'Connell, c.e.o. of
Vestar, called Hearthside
a leader in "quality, safety,
and innovation."
"They respond rapidly to
industry trends and shifting consumer preferences," Mr. O'Connell said.
"Now more than ever, food companies
turn to co-manufacturers like Hearthside to help them initiate and accelerate the commercialization process and
for timely response to changing consumer preferences. We are excited to
work with Rich and his talented team
to take advantage of these positive
long-term trends and grow the business."
Affiliates of Barclays Capital and
Goldman Sachs provided commitments

for the debt financing for the transaction. Davis Polk & Wardwell L.L.P.
acted as the legal advisor to Goldman
Sachs and Vestar in the transaction,
which is expected to close in the second
quarter of 2014.
Announcement of the transaction
comes a little less than a year after

Wind Point Partners merged Hearthside Food Solutions with another of
its portfolio companies: Ryt-way Industries. That move created a contract
food manufacturer with more than $1
billion in sales and 19 manufacturing
facilities across 7 states. Wind Point
acquired Hearthside Food Solutions
in April 2009 and Ryt-way in August
2008.
In conjunction with the merger,
Wind Point Partners agreed to sell
some of Hearthside's assets, including
the branded and private label cereal,

Greencore to build sandwich
facility in Rhode Island
DUBLIN, IRELAND - Greencore
Group P.L.C. has unveiled plans to
build a 107,000-square-foot sandwich
manufacturing facility in Quonset, R.I.
In conjunction with the construction
project, the company said it would
close two existing plants.
"We are delighted to announce
the development of a new food to
go facility in Rhode Island," said
Patrick Coveney, chief executive
officer of Greencore. "This investment will significantly enhance our
capability and capacity to serve the
sandwich market in the northeastern
region of the U.S. and will also enable us to drive further growth with
current customers. Delivering this
project will represent an important
milestone as we continue to build a
strong, growing, profitable food to
go business in the U.S."
Greencore said it will close its existing
facilities in Newburyport and Brockton, Mass., on a phased basis between
April and September 2015. Employees
will be offered the opportunity to take
10 / April 1, 2014 Milling & Baking News

up roles at the new facility.
"The site will be over 100,000 square
feet with a modular design that will
enable future expansion and will
be built to the highest standards of
hygiene, efficiency and process capability," Greencore said. "It will
have sufficient capacity to support ongoing growth and will also
result in material manufacturing
process and distribution savings

granola and snacks business, to Post
Holdings, Inc. for $158 million.
Founded in 1869, Goldman Sachs
provides a range of financial services
to a diversified client base that includes corporations, financial institutions, governments and high-networth individuals.
Vestar Capital Partners is a U.S.
middle-market private equity firm
specializing in management buyouts
and growth capital investments. Vestar
invests and collaborates with
incumbent management teams
and private owners to build
enterprise value. The firm has
experience in the food industry,
with past investments in Celestial Seasonings, Michael Foods
and Birds Eye. Currently, Vestar's portfolio includes Del Monte - now Big
Heart Pet Brands, the largest pet snack
company in the United States - and
specialty foods leader Roland Foods.
Vestar is targeting equity investments in the range of $50 million to
$150 million in U.S.-based middlemarket companies with enterprise
values ranging from $250 million to $1
billion. Founded in 1988, Vestar funds
have completed more than 70 investments in companies with a total value
of more than $40 billion. MBN
estimated at £5 million ($8.3 million)."
The new site will employ 370 people
when it opens in the spring of 2015.
The cost of construction and fitout of the new facility is estimated at
£20 million ($33.2 million) and will
be incurred over the next 15 months.
Greencore also will recognize a noncash impairment of assets in fiscal
year 2014 of £8 million in relation to
the exit from the Newburyport and
Brockton sites, as well as cash exit
and start-up costs estimated at £3
million. The costs will be reported as
exceptional items. MBN

GREENCORE

Goldman Sachs, Vestar to acquire
Hearthside Food Solutions

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Milling & Baking News - April 1, 2014

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