Hammond, Kennedy, Whitney Buys Panos Brands, as Healthy Foods Keep Attracting Buyers – Mergers & Acquisitions – The Middle Market

The sale of Panos, which boasts the Ka-Me and Mi-Del brands, marks the fifth exit for Higher Road Capital Partners

February 2, 2016

Hammond, Kennedy, Whitney & Co. Inc., an Indianapolis-based private equity firm, has actually acquired natural meals provider Panos Brands LLC from High Road Capital Partners.

Panos, headquartered in Rochelle Park, Brand-new Jersey, focuses on “much better for you” meals sold in specialty, natural and organic grocery stores. Brands consist of Ka-Me Asian foods, Andrew & Everett hormone-free cheeses, Mi-Del gluten-free and peanut-free cookies and pie crusts, Sesmark rice- and wheat-based crackers, Amore food preparation pastes and filled pastas, and Chatfield’s allergen-friendly cooking products. Terms of the transaction, which closed on Jan. 29, were not disclosed. Panos CEO Steven Grossman is remaining on as CEO.

John Carsello, a Hammond, Kennedy, Whitney partner, says that Panos met the vital criteria for the firm’s investment, including its placement in the attractive good health and health and wellness meals niche, its growth monitor tape-record and its executive team’s creation of a results-oriented environment. Hammond, Kennedy, Whitney has actually sponsored 51 platform transactions of reduced middle-market companies North America and 56 add-on acquisitions because 1982.

New York-based Higher Road Capital invests in companies in the reduced middle market, acquiring companies along with revenues of $10 million to $100 million and Ebitda of $3 million to $10 million. Formed in 2007, the firm manages much more compared to $470 million of committed capital. The Panos deal is the PE firm’s fifth exit for its debut Higher Road Capital Partners Fund I LP. Including the 5 exits, the firm has actually completed 38 transactions, along with 14 platform investments and 19 add-on acquisitions. Higher Road acquired Panos 5 years ago as a spinoff from a European company, and the company’s revenues grew much more compared to 50 percent and Ebitda grew much more 250 percent, says Bob Fitzsimmons, Higher Road regulating partner.

Panos was represented by Harris Williams & Co. in this transaction, and Jones Day given legal advice to the company.  Higher Road Companion Bill Connell, Principal Dan Gaspar and Companion Jerry Anderson led the Higher Road investment team.

Middle-market M&A activity has actually reflected consumers’ healthy meals binge for several years. A lot of recently, strategic buyers have actually been energetic in healthy and balanced snacks and the meals sector. For example, the Hain Celestial Group (Nasdaq: HAIN) is getting Orchard Estate Foods and Total Mills (NYSE: GIS) purchased Epic Provisions.