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Pass the Salt: PE Poised for Five Billion in Food Industry Exits This Week

by

December 12, 2013

Private equity firms are divesting portfolio companies in the food and beverage sector at a profit, according to the WSJ. They are selling to strategic buyers and the public (through IPOs).

Mentioned in the report is the acquisition of US Foods Inc to Sysco, which will net investors Clayton Dubilier & Rice and KKR more than 1.5 times their original investment in US Foods. Other deals include Kainos Capital’s sale of organic food company Earthbound Farm Inc. to WhiteWave Foods Co., and Post Holdings acquisition of food companies from Tricor Pacific Capital and TA Associates.

The report highlights these four trade sales, along with one other exit, the IPO of Aramark Holdings, a catering and food services which is backed by Warburg Pincus, Thomas H. Lee Partners, CCMP Capital Advisors and GS Capital Partners.

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