Hometown Food Company Acquires Birch Benders

Rhea-AI Summary

On January 9, 2023, Hometown Food Company announced its acquisition of Birch Benders from Sovos Brands (NASDAQ: SOVO). The transaction aims to enhance Hometown's position in the better-for-you food sector. Founded in 2011, Birch Benders offers a wide range of pancake and waffle mixes, including keto and organic products. Hometown's portfolio includes iconic brands like Pillsbury and Funfetti, and this acquisition broadens its market footprint and strengthens its commitment to healthier breakfast options. The financial terms of the deal remain undisclosed.

Positive

• Increases Hometown Food Company's market presence in the health-focused breakfast segment.
• Enhances portfolio with Birch Benders, known for its health-oriented products, complementing Arrowhead Mills.
• Strengthens Hometown's total annual sales to over $2.3 billion across its brands.

Negative

• None.

CHICAGO, Jan. 9, 2023 /PRNewswire/ -- Hometown Food Company, ("Hometown Foods") home to an iconic portfolio of American baking brands, controlled by Brynwood Partners VIII L.P., has completed the acquisition of Birch Benders from Sovos Brands, Inc. (NASDAQ: "SOVO") ("Sovos Brands"), a public company listed on the NASDAQ exchange. The terms of the transaction are not being disclosed.

Hometown Food Company reinforces its commitment to the better-for-you food category with Birch Benders acquisition.

Founded in 2011, Birch Benders Pancake & Waffle Mixes, Toaster Waffles, Pancake and Baking Cups, Baking Mixes and Frostings, Cookies and Syrups have it all: convenience, deliciousness, and quality. Birch Benders offers an expansive portfolio of keto, paleo, and organic options that are sold at grocery and mass retailers, as well as through the E-Commerce channel, nationally.

Hometown Food Company is home to baking brands including Pillsbury Baking®, Funfetti®, Hungry Jack®, Arrowhead Mills®, White Lily®, Jim Dandy®, Martha White®, and De Wafelbakkers®. They believe that, like a favorite recipe, great things come from the right mix of ingredients, years of expertise and plenty of care.

"We are thrilled to announce the acquisition of Birch Benders into Hometown Food Company," said Henk Hartong, Chairman and CEO of Brynwood Partners. "Birch Benders was a pioneer in the health and wellness space and natural baking channel and we are excited to further our commitment to the pancake and baking mix categories. This acquisition is complementary to our existing brand in the space, Arrowhead Mills®, and reinforces our commitment to and industry position in the better-for-you category."

"The Birch Benders acquisition is a wonderful addition to Hometown Food Company's portfolio of brands and it increases our footprint in the better-for-you, breakfast and baking categories," said Tom Polke, President and CEO of Hometown Food Company. "We are truly delighted to have the opportunity to support Birch Benders in its next phase of growth."

Brynwood Partners' portfolio includes Harvest Hill Beverage Company, Carolina Beverage Group, Hometown Food Company, Buitoni Food Company, and Great Kitchens Food Company. Birch Benders increases the total Brynwood platform to more than $2.3 billion in annual sales.

About Hometown Food Company:

Hometown Food Company, based in Chicago, IL, was formed by Brynwood Partners in June 2018 to acquire a portfolio of brands from The J.M. Smucker Company. The portfolio includes the exclusive U.S. rights to the iconic Pillsbury® brand's shelf-stable baking products, including Funfetti®, along with the Hungry Jack®, Arrowhead Mills®, White Lily®, Jim Dandy®, Martha White® and De Wafelbakkers® brands. Pillsbury®, Funfetti® and Hungry Jack® are leading national brands in the shelf-stable baking and breakfast categories and White Lily®, Jim Dandy® and Martha White® are regional brands known for flour, cornmeal and grits. Hometown Foods manufactures the majority of its products from its 650,000 square foot facility in Toledo, OH where the company employs 255 full-time employees. For more information on Hometown Foods, please visit www.hometownfoodcompany.com.

About Brynwood Partners:

Brynwood Partners, founded in 1984 and based in Greenwich, CT, is an operationally-focused private equity firm that makes control investments in North American-based lower middle market companies. The firm targets non-core brands or companies operating exclusively in the consumer sector. Brynwood Partners currently manages more than $1 billion of private equity capital for its limited partners, which include U.S. and international pension funds, fund-of-funds, endowments, foundations, high net worth family investment offices and financial institutions. For more information on Brynwood Partners, please visit www.brynwoodpartners.com.

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SOURCE Hometown Food Company

FAQ

What is the significance of Sovos Brands selling Birch Benders?

The sale allows Sovos Brands to focus on its core operations and potentially strengthen its financial position.

How will the Birch Benders acquisition impact Hometown Food Company's growth?

The acquisition is expected to enhance Hometown's footprint in the health-conscious food market and drive revenue growth.

What products does Birch Benders offer?

Birch Benders offers pancake and waffle mixes, baking mixes, and syrups, with options such as keto and organic.

When was Birch Benders founded?

Birch Benders was founded in 2011.

What brands are included in Hometown Food Company's portfolio?

Hometown Food Company's portfolio includes Pillsbury, Funfetti, Hungry Jack, and now Birch Benders.