Riverside acquires HerbThyme as add-on to GreenLine Foods
Riverside acquires HerbThyme as add-on to GreenLine Foods
The Riverside Co., a global private equity firm headquartered in New York City that specializes in leveraged buyouts, has added HerbThyme Farms Inc. in Compton, CA, to its portfolio as an add-on to GreenLine Foods in Bowling Green, OH, which Riverside acquired in September 2006.
"HerbThyme, the leading grower, processor and distributor of fresh herbs in the U.S., adds a new product category to GreenLine, the leading provider of fresh-trimmed, microwaveable, packaged green beans and other value- added produce items," a Riverside press release stated. "This transaction is Riverside's 11th acquisition of 2008 and the second add-on to GreenLine in five months."
HerbThyme "will remain basically the same," with the same chief executive officer, chief financial officer, vice president of operations and vice presidents of sales, "so for customers, this will be a relatively seamless transition," HerbThyme National Sales Manager Charles (Chick) Goodman told The Produce News April 22. "At HerbThyme, we are glad to have the financial resources of Riverside to help further our explosive growth."
HerbThyme has been growing at a double-digit rate "for many years," said Mr. Goodman. "We are now the largest fresh herb grower in the United States by a factor of manyfold, and we are also the largest organic herb grower in the United States by four or five times what the number two guy is."
HerbThyme itself has been active in acquiring other companies over the course of its existence, specifically Quail Mountain, Malibu Fresh, The Green House, New England Herbs and Marvini Fresh Herbs, Mr. Goodman said.
In addition to its Compton headquarters, the company operates packing and distribution facilities in Claremont, NH; Orlando, FL; and Montreal.
HerbThyme has been expanding its organic acreage in response to demands from retailers that are "going very much toward organics," Mr. Goodman said. "In fact, we are already in the process of securing 70 new organic acres in California."
Also, the company will be doubling the size of its California facility when it takes over an adjacent building Aug. 1.
The customer base also continues to expand. Two new supermarket chains have been added "just in the last few weeks," he said.
"We are growing so fast and requiring so much capital to grow at the rate we are growing ... that to find an equity partner that is willing to invest in our growth" was important. "This gives us a great chance to expand, which is what we were looking for," he said.
There are many synergies that will result, Mr. Goodman said. GreenLine has six processing and distribution facilities around the United States, with the farthest west located in Las Vegas, NV. "This will make us stronger in the Midwest and East and Southwest" with the ability "to pack and ship" at more locations and to use GreenLine's "surface transportation skills," he said.
Asked whether HerbThyme would be retaining its identity or disappearing into GreenLine, Mr. Goodman replied, "I don't know that. That would be something that the capital partners may know. But our CEO has assured me he is on for the long term" and that the management team would be staying in place.
According to the Riverside press release, HerbThyme, which was formed in 2001, "offers 16 types of herbs and herb blends to retail and foodservice customers. The company's four California herb farms produce virtually all of HerbThyme's offerings," with just over 30 percent of the company's 300 acres being certified organic.
In the press release, Riverside partner Tim Gosline said that the HerbThyme acquisition "broadens GreenLine's offering of fresh, value-added produce, leverages customer relationships and distribution networks, and enables GreenLine to strengthen its processing and distribution capabilities on the West Coast. Part of our strategy for GreenLine was to expand its product depth and breadth, and we look forward to the successful integration of these two companies."
"HerbThyme, the leading grower, processor and distributor of fresh herbs in the U.S., adds a new product category to GreenLine, the leading provider of fresh-trimmed, microwaveable, packaged green beans and other value- added produce items," a Riverside press release stated. "This transaction is Riverside's 11th acquisition of 2008 and the second add-on to GreenLine in five months."
HerbThyme "will remain basically the same," with the same chief executive officer, chief financial officer, vice president of operations and vice presidents of sales, "so for customers, this will be a relatively seamless transition," HerbThyme National Sales Manager Charles (Chick) Goodman told The Produce News April 22. "At HerbThyme, we are glad to have the financial resources of Riverside to help further our explosive growth."
HerbThyme has been growing at a double-digit rate "for many years," said Mr. Goodman. "We are now the largest fresh herb grower in the United States by a factor of manyfold, and we are also the largest organic herb grower in the United States by four or five times what the number two guy is."
HerbThyme itself has been active in acquiring other companies over the course of its existence, specifically Quail Mountain, Malibu Fresh, The Green House, New England Herbs and Marvini Fresh Herbs, Mr. Goodman said.
In addition to its Compton headquarters, the company operates packing and distribution facilities in Claremont, NH; Orlando, FL; and Montreal.
HerbThyme has been expanding its organic acreage in response to demands from retailers that are "going very much toward organics," Mr. Goodman said. "In fact, we are already in the process of securing 70 new organic acres in California."
Also, the company will be doubling the size of its California facility when it takes over an adjacent building Aug. 1.
The customer base also continues to expand. Two new supermarket chains have been added "just in the last few weeks," he said.
"We are growing so fast and requiring so much capital to grow at the rate we are growing ... that to find an equity partner that is willing to invest in our growth" was important. "This gives us a great chance to expand, which is what we were looking for," he said.
There are many synergies that will result, Mr. Goodman said. GreenLine has six processing and distribution facilities around the United States, with the farthest west located in Las Vegas, NV. "This will make us stronger in the Midwest and East and Southwest" with the ability "to pack and ship" at more locations and to use GreenLine's "surface transportation skills," he said.
Asked whether HerbThyme would be retaining its identity or disappearing into GreenLine, Mr. Goodman replied, "I don't know that. That would be something that the capital partners may know. But our CEO has assured me he is on for the long term" and that the management team would be staying in place.
According to the Riverside press release, HerbThyme, which was formed in 2001, "offers 16 types of herbs and herb blends to retail and foodservice customers. The company's four California herb farms produce virtually all of HerbThyme's offerings," with just over 30 percent of the company's 300 acres being certified organic.
In the press release, Riverside partner Tim Gosline said that the HerbThyme acquisition "broadens GreenLine's offering of fresh, value-added produce, leverages customer relationships and distribution networks, and enables GreenLine to strengthen its processing and distribution capabilities on the West Coast. Part of our strategy for GreenLine was to expand its product depth and breadth, and we look forward to the successful integration of these two companies."
