Truelink Capital is close to acquiring US food ingredients and beverage manufacturer Lyons Magnus in a transaction valuing the business at around $1bn, including debt, according to a report by the Wall Street Journal.
The Los Angeles-based private equity firm is expected to acquire the California-headquartered company from Paine Schwartz Partners, with an announcement anticipated shortly if negotiations conclude as planned.
Founded in 1852, Lyons Magnus supplies fruit-based ingredients and beverage products to the foodservice industry. Its portfolio includes coffee flavouring syrups, smoothie bases, fruit purées, nutritional beverages and dessert toppings, serving customers such as restaurant chains, cafés and other foodservice operators.
The sale would mark the end of Paine Schwartz’s ownership following its acquisition of the business in 2017. During that period, Lyons Magnus expanded both organically and through acquisitions, completing several strategic deals, including the purchase of selected operations from Hormel Foods to broaden its product offering and strengthen its presence in healthcare nutrition.
The company has also significantly increased its scale under private equity ownership, with annual revenue reportedly growing to more than $1 billion since the 2017 buyout.
For Truelink Capital, the acquisition would represent another sizeable investment following the firm’s recent fundraising success. Earlier this year, the middle-market private equity manager closed its latest fund with approximately $2 billion in commitments, providing fresh capital for investments across business services and industrial sectors.
The transaction also reflects continued deal activity in the global food ingredients market, where private equity firms and strategic buyers remain active despite a more selective M&A environment. Recent transactions in the sector include CVC Capital Partners’ acquisition of International Flavors & Fragrances’ food ingredients business and Ingredion’s agreement to acquire UK-based Tate & Lyle.
