Chicago-based private equity firm Wind Point Partners has completed the acquisition of Hearthside Food Solutions, based in Grand Rapids, Michigan, a contract manufacturer of specialty f
Chicago-based private equity firm Wind Point Partners has completed the acquisition of Hearthside Food Solutions, based in Grand Rapids, Michigan, a contract manufacturer of specialty food products such as granola bars, croutons, cereals and popcorn.
Hearthside is the first acquisition from Wind Point VII.
Mark Burgett, a managing director at Wind Point, says: ‘Hearthside has enjoyed impressive growth in recent years and represents another attractive investment in the food space for Wind Point. The food contract manufacturing industry is growing more than ten per cent annually as food companies continue to outsource an increasing portion of manufacturing due to high legacy labour costs, the need to rationalize overly complex supply chains, and the desire to focus more time marketing brands and less time investing in hard assets.’
Rich Scalise has joined Hearthside as chief executive. He is a 32-year veteran of the food industry, most recently as president of Ralcorp Frozen Bakery Products, a division of Ralcorp Holdings. Scalise also spent 18 years with ConAgra Foods in a variety of roles including his last position as president and chief operating officer of ConAgra’s USD3bn refrigerated foods division.
Scalise says: ‘The people of Hearthside are its strength and I look forward to leading the company during this period of growth. Hearthside has a long history of success, driven by superior operating expertise, a differentiated business model, and a true culture of partnership with its customers. Additionally, I’m encouraged by Wind Point’s philosophy to partner with management in executing our value creation plan to grow customer relationships by adding new capacity in both existing and complementary product categories and geographies.’
Wind Point’s other investments in the food industry include Nonni’s Food Company (sold to Vivartia in 2008), Ryt-way Industries (acquired in August 2008), Santa Maria Foods (acquired in January 2007), and Bakery Chef (sold to Ralcorp in 2003).
