Expanding its portfolio in the breakfast and snacking food market, food company Sovos Brands has agreed t…
Expanding its portfolio in the breakfast and snacking food market, food company Sovos Brands has agreed to acquire pre-packaged pancake and waffle mix brand Birch Benders.
Haynes and Boone and Piper Sandler acted as legal and financial adviser to Birch Benders, respectively, with Sovos Brands enlisting Weil, Gotshal & Manges for legal advice on the transaction.
The transaction is expected to be finalised by the end of October.
Sovos, which invests in food companies with significant growth potential, is backed by global private equity company Advent International, which itself announced the continuation of a merger with Forescout Technologies, last month.
By acquiring Denver-based Birch Benders, Sovos has increased its presence in the healthy snacking and breakfast markets, as well as taking on a brand that targets paleo and keto diets. Birch Benders will be the fourth brand to join Sovos Brand’s portfolio, which currently comprises pasta sauce and soup brand Rao’s, a brand with a similar offering – noosa yoghurt, and Michael Angelo’s, which specialises in frozen appetisers.
Since acquiring these brands, Sovos has experience double digit sales growth continuously, also increasing its profit margins. Together with Birch Brands, Sovos Brand’s yearly retail sales will exceed USD 750 million.
In a statement, Sovos Brand’s CEO and president Todd Lachman said: “With our proven ability to transform brands by unleashing growth and deepening consumer affinity, we are thrilled to take Birch Benders to a new chapter of growth while diversifying Sovos Brands into new categories.”
Birch Benders’ founder and CEO Matt LaCasse added that the Sovos team will help the company to reach more customers.
Haynes and Boone engaged an advisory team led by Denver partner Dan Malone, who focuses on mergers and acquisitions (M&A) and strategic investments in the food and beverage and consumer products sectors. He brought specialist knowledge as former senior counsel at Denver-headquartered packaged food and beverage company WhiteWave Foods.
The Haynes and Boone multi-practice advisory team also comprised M&A lawyers David Lightstone, Tom Tippetts and Rachael Apfel, intellectual property lawyer Robert Ziemian, food regulation lawyers Suzie Trigg and Joanna Pearce, benefits expert Scott Thompson, labour and employment professional Raquel Alvarenga and tax advisers Ken Bezozo, Sam Lichtman and Don Shiman.
Recent acquisitions by Advent International include Lululemon Athletica, which itself recently purchased home-fitness company MIRROR for USD 500 million.