Ryt-way Industries Acquires Cloud Packaging Solutions

June 2010

June 30, 2010
Ryt-way Industries Acquires Cloud Packaging Solutions
Wind Point Partners is pleased to announce that portfolio company Ryt-way Industries (“Ryt-way”) has acquired the food and beverage and equipment and manufacturing businesses of Cloud Packaging Solutions, including Cloud Packaging Services, Cloud Equipment Company and Toll Packaging Services (together, “Cloud”), a part of Cameron Holdings’ contract packaging portfolio business. Cloud will add over $50 million of revenue to Ryt-way, bringing total Ryt-way revenue to approximately $200 million.

Ryt-way, based in Lakeville, Minn., is a leading contract packager of dry food products such as ready-to-eat cereals, prepared meals, side dishes, beverages and sweeteners.Cloud is a contract packager of food and consumer products, including powdered beverages, sweeteners, fruit snacks, oatmeal, hot cereal, coffee, baby food and pet treats. Cloud also designs and manufactures high-speed packaging equipment.

Both entities bring long-term relationships with many of North America’s leading consumer packaged goods food companies. The combination will transform Ryt-way into a “one-stop shop” that can provide its customers with a broad suite of packaging options, technological advantages, and category expertise for the packaging of an array of dry foods, including cereals, prepared meals, snacks, sweeteners, side dishes, desserts, dried fruit, nutraceuticals, and pet foods. In addition, Cloud adds four Illinois facilities to the Ryt-way’s two facilities in Minnesota.

Mark Burgett, a Wind Point managing director, commented, “We are excited about this highly complementary acquisition for Ryt-way. Customers will benefit from the new capabilities and locations, which will provide Ryt-way with excellent growth opportunities.”

Wind Point acquired Ryt-way in August 2008 in partnership with David Finch, who joined Ryt-way as CEO, and George Bayly, who joined as Chairman. Previously, David was Group Vice President of Johnsonville Sausage and George was Chairman and CEO of Altivity Packaging.

David Finch stated, “By bringing these companies together we will be better positioned to offer each of our customers more comprehensive solutions in contract packaging, new product commercialization, and innovation. Each company brings to the table a strong set of competencies, excellent people, and proven industry know-how. Each is a respected leader in their industry segment.”

Senior debt participants include GE Capital Markets as Co-Lead Arranger and Joint Bookrunner, CIT Sponsor Finance as Co-Lead Arranger and Joint Bookrunner, CIT Commercial & Industrial as Co-Syndication Agent, Fifth Third Bank as Co-Syndication Agent, and ING Capital as Documentation Agent. Norwest Mezzanine Partners provided subordinated debt. KPMG, LLP served as a transaction advisor. Legal counsel for Wind Point on the transactions was Kaye Scholer, LLP.

All News
We are excited about this highly complementary acquisition for Ryt-way.
Mark Burgett