New Heritage Capital Exits Investment in Portfolio Company, Revela Foods

Rhea-AI Summary

New Heritage Capital successfully exits investment in Revela Foods, acquired by ADM to expand flavor ingredient solutions. Revela develops dairy flavor ingredients with rapid growth driven by innovative enzyme technology. It has approximately 400 employees and operates three state-of-the-art production facilities in the U.S. Midwest.

Positive

• Successful exit of investment in Revela Foods
• Acquisition by ADM to expand flavor ingredient solutions
• Rapid growth driven by innovative enzyme technology
• Approximately 400 employees and three state-of-the-art production facilities in the U.S. Midwest

Negative

• None.

Insights

Market Research Analyst

The acquisition of Revela Foods by ADM represents a strategic move to enhance their portfolio in flavor ingredient solutions, a sector that has seen increasing demand due to consumer preferences for clean label and innovative food products. The transaction suggests a consolidation within the industry, which could lead to increased market share and stronger bargaining power for ADM. From a market research perspective, the integration of Revela's enzyme technology into ADM's offerings could lead to product diversification and potentially open new markets, further solidifying ADM's position in the nutrition space.

Revela's rapid growth trajectory and its impact on ADM's future revenue streams will be closely monitored by investors. The mention of 'state-of-the-art production facilities' hints at potentially reduced capital expenditure for ADM in the near future, as they may not need to invest heavily in upgrading facilities. This acquisition could also lead to economies of scale, lowering production costs and increasing profitability for ADM in the long run.

Financial Analyst

The successful exit by New Heritage Capital from its investment in Revela Foods and the acquisition by ADM is a significant financial event that could have implications for ADM's financial health and stock performance. The deal's financial terms were not disclosed, but the impact on ADM's balance sheet and cash flows will be an area of interest for shareholders and potential investors. The acquisition could lead to immediate revenue growth for ADM, given Revela's reported rapid growth and expansion in recent years.

Investors will be keen to assess how the acquisition affects ADM's price-to-earnings (P/E) ratio and whether the purchase price aligns with Revela's earnings potential. Additionally, the synergies expected from the acquisition will be scrutinized in terms of cost savings and revenue enhancement. The performance of ADM's stock post-acquisition announcement could serve as an indicator of market sentiment regarding the deal's perceived value.

Legal Expert

From a legal standpoint, the role of advisors Houlihan Lokey, Lincoln International, Choate Hall & Stewart, LLP and Reinhart Boerner Van Deuren s.c. indicates a complex transaction, possibly involving intricate due diligence and negotiation processes. The legal complexities of such mergers and acquisitions can include antitrust considerations, intellectual property rights and labor laws, especially given Revela's approximate 400 employees and multiple facilities. The seamless execution of this acquisition could set a precedent for similar transactions in the food and nutrition industry.

For stakeholders, the legal robustness of the deal is crucial to ensure that the acquisition does not encounter regulatory hurdles that could delay or impact the expected benefits. It will be important to monitor how ADM integrates Revela's workforce and intellectual property to avoid potential legal disputes that could overshadow the strategic advantages of the acquisition.

BOSTON--(BUSINESS WIRE)-- New Heritage Capital (“Heritage”) is pleased to announce the successful exit of its investment in Revela Foods (“Revela” or the “Company”). The Company was acquired by ADM (NYSE: ADM), a Fortune 50 global human and pet nutrition company, to further expand its flavor ingredient solutions offering.

Created via the 2016 merger of Welcome Dairy and Gamay Food Ingredients and headquartered in New Berlin, WI, Revela develops and manufactures innovative dairy flavor ingredients and solutions. Revela has delivered rapid growth, driven by its innovative enzyme technology, which powers a broad range of clean label dairy flavor formulations for multiple applications, from snacks and frozen meals to sauces, dressings, soups, seasonings and desserts. The Company has approximately 400 employees and operates three state-of-the-art production facilities in the U.S. Midwest. Heritage worked closely with the Revela management team to execute a comprehensive strategic and operational growth plan that resulted in strong growth and prepares the Company well for continued expansion.

Terry Schneider, CEO of Revela Foods, said, “Over the last few years we have expanded our management team, added new product capabilities, launched a comprehensive go-to-market strategy - including a new brand - and completed a significant acquisition, all resulting in significant growth. Heritage was by our side throughout that entire journey, helping us to transform the company while preserving our history. We are proud of what we have accomplished together.”

“This has been an incredible journey, transforming Revela from a highly regarded, founder-owned dairy ingredients business into an innovative flavor solutions business playing an integral role in innovation and development for its customers,” said Melissa Barry, Partner at Heritage. “This is what Heritage does best – partnering with strong businesses such as Revela to help them unlock their full potential.”

Advisors

Houlihan Lokey and Lincoln International acted as financial advisors and Choate Hall & Stewart, LLP and Reinhart Boerner Van Deuren s.c. acted as legal advisors to Revela and Heritage.

About New Heritage Capital

Heritage is a Boston-based private equity firm with a more than twenty-year history of partnering with growing, middle market, founder-owned businesses. With its innovative investment structures like the Private IPO®, Heritage provides founders with a combination of liquidity and growth capital while allowing founders to maintain control of their business. With decades of experience at managing growth, Heritage gives its partners the strategic, operational and financial guidance to help its companies reach their growth objectives. For more information, please visit: www.newheritagecapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124573882/en/

Jeremy Milner

BackBay Communications

(401) 862-9422

jeremy.milner@backbaycommunications.com

Source: New Heritage Capital

FAQ

What company acquired Revela Foods?

Revela Foods was acquired by ADM (NYSE: ADM), a Fortune 50 global human and pet nutrition company.

What type of flavor ingredients does Revela develop?

Revela develops innovative dairy flavor ingredients and solutions driven by its innovative enzyme technology.

How many employees does Revela Foods have?

Revela Foods has approximately 400 employees.

Where are the production facilities of Revela Foods located?

Revela Foods operates three state-of-the-art production facilities in the U.S. Midwest.

Who acted as financial advisors to Revela and Heritage?

Houlihan Lokey and Lincoln International acted as financial advisors to Revela and Heritage.