Border Foods, Inc, a portfolio company of Ares Capital Corporation (Ares Capital), has been sold to strategic buyer Mizkan Americas, Inc, a subsidiary of Japan-based Mizkan Group Corporation (Mizkan). Harris Williams & Co acted as the exclusive advisor to Border Foods in the transaction, which closed on May 12, 2011.
“Mizkan has utilised strategic acquisitions of strong segment leaders to diversify its position across existing channels and strengthen its business. Border Foods leadership in the growing market for Hispanic foods offers Mizkan new opportunities to expand the global presence of its retail, branded, food ingredients and foodservice business,” says Tim Alexander, managing director at Harris Williams & Co.
Glenn Gurtcheff, managing director and head of Harris Williams & C.’s Consumer Group says: “We continue to see strong M&A activity across the food and beverage industry and expect strategic and financial buyers to remain highly interested in the sector.”
Border Foods is the nation’s oldest and most established processor of Green Chile, Jalapeño and Tomatillo peppers and enchilada sauces for the ingredient, private label, co-pack, and foodservice end markets. Located in Deming, NM, Border Foods began operations in 1972 and is the largest processor of quality Chile peppers in the United States. Border Foods has demonstrated consistent growth and is the market leader in the industry.
Ares Capital is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, a wholly owned subsidiary of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of March 31, 2011, Ares Management LLC had approximately $40 billion of committed capital under management.
Mizkan, a 200-year old, privately-held global food manufacturer based in Handa City, Japan, is the parent company of Mizkan Americas, Inc. Mizkan Americas is a leading manufacturer of condiments in the United States with 14 manufacturing plants that serve the retail, foodservice, specialty Asian and food ingredient trade channels. Since 2005, Mizkan Americas has seen dramatic growth due to the acquisition of Holland House® cooking wines, the Specialty Foods Division of Imperial Brands and World Harbors Marinades & Sauces. Mizkan Americas produces a wide variety of vinegars, mustards, cooking wines, wine reductions, sushi seasoning, jellies, salad dressings, Asian sauces and other liquid condiments. Mizkan brands include Holland House, NAKANO, Four Monks, Barengo, Mitsukan and World Harbors.
