May 9, 2013
Hearthside Announces Sale Of Golden Temple
All-natural, ready-to-eat cereal business being sold to Post Holdings, Inc. (NYSE:POST)
Hearthside Food Solutions (“Hearthside”), a Wind Point Partners portfolio company, announced today that it has reached an agreement to sell its Golden Temple business, a manufacturer of all-natural ready-to-eat cereals and granola, to Post Holdings, Inc. (NYSE:POST). The terms of the transaction were not disclosed. The transaction is expected to close after required regulatory approvals are received.
Hearthside, headquartered in Downers Grove, Ill., is a full service contract manufacturer of high quality grain-based food and snack products. Wind Point acquired the Hearthside platform in April 2009, in addition to three subsequent acquisitions, including the Golden Temple business in 2010. During Wind Point’s ownership, Hearthside has grown into the largest independent bakery in the U.S.
Wind Point invested in Hearthside in partnership with Rich Scalise, who joined as CEO at the time of Wind Point’s investment. Rich is a 35-year veteran of the food industry who most recently served as President of Ralcorp Frozen Bakery Products, a division of Ralcorp Holdings, Inc. (NYSE:RAH). Rich previously spent 18 years with ConAgra Foods (NYSE:CAG) in a number of roles including his last position as President and COO of ConAgra’s $3 billion Refrigerated Foods Division.
“The Golden Temple divestiture will allow Rich and his team to focus exclusively on Hearthside’s core business of contract manufacturing.”
- Mark Burgett, Managing Director
Mark Burgett, a managing director at Wind Point, said, “In addition to providing an attractive return on our investment in Golden Temple, the divestiture will allow Rich and his team to focus exclusively on Hearthside’s core business of contract manufacturing.”
Rich Scalise, CEO of Hearthside, commented, “Golden Temple performed very well over the past three years, and we grew both revenue and EBITDA significantly. Golden Temple products have a strong market position within all-natural cereals, and we think they will be an excellent addition to Post’s product portfolio.”
Wind Point’s other investments in the food industry include Shearer’s Foods (acquired in October 2012), Rupari Foods (acquired in July 2011), Nonni’s Biscotti (acquired in February 2011), Ryt-way Industries (acquired in August 2008), Santa Maria Foods (sold to Sofina Foods in 2012), and Bakery Chef (sold to Ralcorp in 2003).