Private equity firm Swander Pace Capital has sold its minority investment in natural and organic meat company Applegate to Hormel Foods Corp.
Swander Pace, along with Applegate founder Stephen McDonnell, have transferred ownership to Hormel in a transaction valued at USD775 million.
“We have enjoyed working with Stephen and the rest of his team to grow Applegate into the leader in the natural and organic meat industry,” says Andrew Richards, a Managing Director at Swander Pace. “Over nearly three decades, Applegate has been changing the food industry and providing quality products to meet the changing preferences of consumers who highly value transparency and natural ingredients.”
“Swander Pace has been a valued partner over the last six years and instrumental in providing guidance and support to grow our brand and expand distribution channels all while maintaining our commitment to our mission and values,” says McDonnell. “Applegate’s leadership in the natural and organic food movement and mission to the change the meat we eat will continue with our partnership with Hormel.”
McDonnell founded Applegate in 1987, and the company has experienced exponential growth in the exploding organic and natural food market. Applegate sells a wide variety of natural and organic meat products including deli meats, hot dogs, bacon, sausages, frozen breaded chicken and pre-packed lunch kits. There are currently more than 140 Applegate products sold in stores nationwide. Applegate is a pioneer in providing antibiotic-free and humanely-raised meat.
“We have been honoured to support Applegate in its efforts to change the meat industry,” ssaysaid Rob DesMarais, a Managing Director at Swander Pace. “This transaction represents another successful execution of our consumer products investment strategy to attract and partner with world class teams, implement effective marketing strategies, optimize productivity, and drive success in a growing industry.”
