Investment firm partners with Ready Pac
Investment firm partners with Ready Pac
In a move designed to infuse capital into the company, Ready Pac Foods Inc. in Irwindale, CA, has partnered with Bayside Capital, a private equity firm.
Ready Pac Executive Vice President and Chief Financial Officer Craig Delaney would not reveal the size of the deal but said that the investment Bayside has made in the privately held produce company will "position us to continue to grow our business" and take it to the next level.
He said that the deal with Bayside ends the previously announced discussions with Univeg, a Belgian produce company with holdings all over the world.
"We had announced a non-binding letter of intent to enter into discussions with Univeg," Mr. Delaney said. "It was just that - 'non-binding.' At the end of the day, we decided that partnering with Bayside presented us with a better opportunity."
In a company press release, Ready Pac Chairman and Chief Executive Officer Dennis Gertmenian said, "We are excited to partner with a premier private equity firm to help facilitate our growth. Bayside's investment allows us to accelerate our 38-year history of partnering with our customers to bring high-quality innovative new products to market while providing excellent service."
Mr. Delaney said that the announcement of the relationship gives transparency to the deal, but for Ready Pac's vendors and suppliers, it will be "business as usual." He said there would be no changes in the day-to-day management of Ready Pac, but he indicated that Bayside would provide an oversight role through the board of directors.
In the press release, Tiffany Kosch of Bayside Capital said, "Bayside views our investment in Ready Pac as a flagship investment in the fast-growing, fresh prepared foods industry segment. We will leverage our financial resources to enhance the company's operational excellence and industry leadership."
Anthony DiSimone, also of Bayside Capital, added in the press release, "The company has an outstanding management team, leading market position and, with our resources, is well-positioned to capitalize on the opportunities created by the strong customer demand for its products."
Ready Pac is a major player in the value-added fresh-cut fruit and vegetable industry, though it lags behind industry leaders Fresh Express and Dole. It is, however, a leader in the entree category with its protein-enhanced packaged salads.
Recently, both Sara Lee Inc. and Kraft Foods announced that they were entering the fresh-cut packaged salad business with entree salads featuring meat.
Mr. Delaney acknowledged their entry into that field, stating, "It has been a strong seller for us, so it is not surprising that others are entering the category."
Bayside Capital is an affiliate of H.I.G. Capital, a private equity investment firm specializing in acquisitions and recapitalizations of middle market businesses. Based in Miami and with offices in Atlanta, Boston and San Francisco, H.I.G. manages in excess of $3 billion of committed equity capital to support its investment activities.
Ready Pac Executive Vice President and Chief Financial Officer Craig Delaney would not reveal the size of the deal but said that the investment Bayside has made in the privately held produce company will "position us to continue to grow our business" and take it to the next level.
He said that the deal with Bayside ends the previously announced discussions with Univeg, a Belgian produce company with holdings all over the world.
"We had announced a non-binding letter of intent to enter into discussions with Univeg," Mr. Delaney said. "It was just that - 'non-binding.' At the end of the day, we decided that partnering with Bayside presented us with a better opportunity."
In a company press release, Ready Pac Chairman and Chief Executive Officer Dennis Gertmenian said, "We are excited to partner with a premier private equity firm to help facilitate our growth. Bayside's investment allows us to accelerate our 38-year history of partnering with our customers to bring high-quality innovative new products to market while providing excellent service."
Mr. Delaney said that the announcement of the relationship gives transparency to the deal, but for Ready Pac's vendors and suppliers, it will be "business as usual." He said there would be no changes in the day-to-day management of Ready Pac, but he indicated that Bayside would provide an oversight role through the board of directors.
In the press release, Tiffany Kosch of Bayside Capital said, "Bayside views our investment in Ready Pac as a flagship investment in the fast-growing, fresh prepared foods industry segment. We will leverage our financial resources to enhance the company's operational excellence and industry leadership."
Anthony DiSimone, also of Bayside Capital, added in the press release, "The company has an outstanding management team, leading market position and, with our resources, is well-positioned to capitalize on the opportunities created by the strong customer demand for its products."
Ready Pac is a major player in the value-added fresh-cut fruit and vegetable industry, though it lags behind industry leaders Fresh Express and Dole. It is, however, a leader in the entree category with its protein-enhanced packaged salads.
Recently, both Sara Lee Inc. and Kraft Foods announced that they were entering the fresh-cut packaged salad business with entree salads featuring meat.
Mr. Delaney acknowledged their entry into that field, stating, "It has been a strong seller for us, so it is not surprising that others are entering the category."
Bayside Capital is an affiliate of H.I.G. Capital, a private equity investment firm specializing in acquisitions and recapitalizations of middle market businesses. Based in Miami and with offices in Atlanta, Boston and San Francisco, H.I.G. manages in excess of $3 billion of committed equity capital to support its investment activities.
