Hearthside Food Solutions sold to private equity firms for more than $2.4bn

Hearthside Food Solutions, the largest independent bakery, has been sold to private equity firms Partners Group Holding AG and Charlesbank Capital Partners in a deal valued at more than $2.4bn.

The US-based snacks manufacturer produces products such as cookies, crackers, pretzels and granola bars for major food and beverage firms such as Kellogg and PepsiCo Inc.

Due to the growing popularity of snack products, Hearthside Food Solutions reportedly has earnings of around $120n before interest, tax, depreciation and amortization (EBITDA), according to sources at Reuters.

The deal showcases the growing appeal of food manufacturing companies to private equity companies, as many major food and beverage brands rely on manufacturers like Hearthside for their operations.

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"Under Rich Scalise's leadership, Hearthside has revolutionized food contract manufacturing, bringing scale to the industry,” said Chris Russell, Managing Director of Private Equity Americas, Partners Group.

“We see strong potential for the Company to continue on its growth path as its business model is supported by global transformative trends, such as increased outsourcing, which show no signs of flagging. We look forward to working with Rich and the rest of the Hearthside team."

Rich Scalise, Co-founder, Chairman and CEO of Hearthside, added: "By combining flexibility and innovation with quality and scale, we have been able to achieve our vision of transforming Hearthside into one of the leading and fastest-growing companies in the food industry.

“Today, we are delighted to be welcoming Partners Group and Charlesbank as partners for the next chapter of our success story and would like to thank Goldman and Vestar for their valuable partnership over the last few years."