Hearthside Food Solutions Sells Golden Temple

Hearthside Food Solutions, a company backed by Wind Point Partners, is selling its Golden Temple business, which makes cereals and granola. The buyer is publicly traded Post Holdings Inc. Terms were not released. Hearthside is based in Downers Grove, Illinois.

PRESS RELEASE

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 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.

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).

About Wind Point Partners
Wind Point Partners is a private equity investment firm that manages commitments of approximately $2.5 billion. Wind Point focuses on partnering with top caliber CEOs to acquire middle market businesses where we can establish a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.

About Hearthside Food Solutions
Hearthside Food Solutions, headquartered in Downers Grove, IL, is the nation’s largest independent bakery and a full service contract manufacturer of high quality grain-based food and snack products for some of the world’s leading premier brands. Hearthside operates 13 food manufacturing facilities in six states with a workforce in excess of 5,000.

Crain’s Chicago Business Largest Private Companies: Hearthside Food Solutions

April 18 – Chicago IL – Crain’s Chicago Business, famous for the “LISTS” it publishes each year, is out with their 2013 “Chicago’s Largest Private Companies” list. Hearthside Food Solutions again is on the list, ranking #48. This is the second year Hearthside has been on this Crain’s list. Last year’s ranking was #44. For more information, visit Crain’s Chicago Business here.

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Hearthside Food Manufacturing Magazine: Raising the Bar

Hearthside Food Manufacturing Cover Story

Hearthside Food Manufacturing Magazine: Hearthside Foods was again featured in a major industry trade magazine. The story, from the April issue of Food Manufacturing, was based on a plant tour and series of interviews by the magazine’s editor, Krystal Gabert in late 2012. The full text of the story can be found here, or by clicking the magazine below.

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Hearthside Foods expanding London operations, creating 80 new jobs

Hearthside Foods expanding London operationFRANKFORT, Ky. (July 19, 2012) — Hearthside Food Solutions LLC plans to add a production line to its existing facility in London, creating 80 jobs and investing $1.4 million in the project.

Hearthside Foods expanding London operation. “It’s always exciting to see a company continue to invest in its Kentucky facility, increase jobs and help grow the economy here in the commonwealth,” said Gov. Steve Beshear.

Including the London facility, Hearthside has 13 manufacturing plants in six states. With an 80-year history, Hearthside is the contract manufacturer to premier food companies. The company is again expanding its London operation, adding a new production line for bakery products.

“Hearthside’s cookie factory has been part of Laurel County for generations, confirming our commitment to both our people and our community,” said Hearthside Vice President of Manufacturing Doug Sherman. “Continued investment, including this expansion, is good for our people, for Kentucky and for our company.”

Kentucky is home to a thriving food and beverage industry, including approximately 265 facilities, employing nearly 42,000 people. During Gov. Beshear’s administration, 123 food and beverage-related industry locations or expansions have been announced resulting in more than 2,600 new jobs and $766.6 million in new investment for the state.

“Any time we expand manufacturing in our town, it is sweet music to our ears,” said Sen. Tom Jensen, of London. “I welcome Hearthside, whose products are also sweet, to London and anticipate a great relationship.”

“Hearthside is a cornerstone in the commercial growth of London and Laurel County,” said London Mayor Troy Rudder. “Now with a $1.4 million investment and the addition of 80 jobs, Hearthside continues its leadership role. The city of London is excited and we pledge our complete support during this time of expansion.”

The Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $1.2 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets. Hearthside Foods expanding London operation.

Hearthside Food Solutions, headquartered in Downers Grove IL, is the nation’s largest independent bakery and a full service contract manufacturer of high quality grain-based food and snack products for some of the world’s leading premier brands. The privately held company, formed in 2009, today operates 13 food manufacturing facilities in six states with a workforce in excess of 5,000.  For more information on Hearthside Food Solutions, visit www.hearthsidefoods.com.

Crain’s: HFS one of Region’s Largest Private Companies

Crain’s Chicago Business, the region’s most respected source for business news and information, has again published their list of “Chicago’s Largest Private Companies”.

This is the first year Hearthside is eligible for the list and has debuted at #44. More information can be found at Crain’s Chicago Business.

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