Private equity firm SunTx Capital Partners acquired a majority interest in Carolina Beer & Beverage, an independent contract beverage manufacturer based in Mooresville, North Carolina.
Financial terms of the transaction were not disclosed.
Carolina Beer & Beverage was founded in 1997 by J. Michael Smith and John Stritch. The duo acquired the rights and formula to the Carolina Blonde and Cottonwood Ales beer brands.
Smith will continue to serve as chief executive of the company.
“We are very excited about this partnership with SunTx Capital, which has a long track record of growing businesses, while building value and creating attractive opportunities for employees,” says Smith. “With SunTx as our strategic partner, we feel that we can take advantage of the numerous opportunities to grow. We believe that our existing customer and supplier relationships, efficient manufacturing capabilities and experienced management team will enable us to continue our superior historical performance and margin growth.”
Ned Fleming, managing partner of SunTx Capital, says: “We are very excited about the future of CBB and look forward to working with Mike Smith and his experienced management team. The functional beverage industry is the highest-growth segment of the beverage industry and we believe CBB is well positioned, through its attractive portfolio of strong customer relationships and continued focus on operational excellence, to capture increased market share and recognise substantial upside.”