Union Capital's Strategic Sale of FITCRUNCH and Bakery Barn
Union Capital Completes Sale of FITCRUNCH and Bakery Barn
Union Capital Associates, L.P., a dynamic private equity firm known for its focus on lower middle market opportunities, recently announced a significant move by finalizing the sale of two of its prize portfolio companies - FITCRUNCH and Bakery Barn - to 1440 Foods. This transaction underscores Union Capital's successful strategy in nurturing and expanding its brands before transitioning them into capable hands.
Understanding the Transition
Acquired in 2019, Union Capital's partnership with Bakery Barn and FITCRUNCH was marked by strategic growth initiatives and operational enhancements. This collaboration enabled both companies to evolve into prominent players within the nutrition bar industry. Through an extensive approach that included improving production capacity and expanding distribution networks, alongside launching a high-tech production facility in 2022, Union Capital ensured that production capacity experienced a threefold increase.
Insights from the Leadership Team
Matt Cruny, the Chief Executive Officer of Bakery Barn, expressed gratitude for Union Capital’s essential role in refining operations and enhancing capacity utilization. He noted the importance of focusing on product efficiency to fully leverage their first manufacturing facility. FITCRUNCH's CEO, Patrick Cornacchiulo, echoed similar sentiments, highlighting the meteoric growth achieved during their five-year collaboration with Union Capital.
The Vision Realized
Robert Irvine, the Co-Founder of FITCRUNCH, reflected on the journey of building the brand from scratch. He emphasized the pride in the accomplishments their team achieved, crediting Union Capital for being a pivotal partner throughout this successful endeavor. The impressive growth rates, including a remarkable 30x increase in annual Adjusted EBITDA for FITCRUNCH since Union's investment, signal the positive impact of their strategic partnership.
Strategic Advisors and Financial Details
As both companies transitioned to 1440 Foods, financial entities were actively involved to ensure a smooth process. Piper Sandler & Co. served as the lead financial advisor for the transition, and KeyBanc Capital Markets Inc. provided valuable advisement for Bakery Barn's handover. On 1440's side, William Blair & Company LLC took charge as lead financial advisor, while significant support from other institutions ensured this deal was well-supported from all financial fronts.
About the Brands
FITCRUNCH, founded by celebrity chef Robert Irvine, is renowned for producing high-protein snacks that drive active lifestyles, particularly celebrated for its distinctively delicious protein bars. These bars not only excel in flavor but are also packed with up to 30 grams of protein intended to cater to fitness enthusiasts and health-conscious individuals alike.
Bakery Barn stands out in the industry as a specialist manufacturer of high-protein bars, cookies, and brownies. Its reputation stems from its innovative six-layer protein bar, setting a new standard in taste and texture within the nutrition bar sector.
About Union Capital Associates, L.P.
Union Capital has been a key player in the private equity landscape since its establishment in 1968. The firm capitalizes on opportunities within the lower middle market, specifically targeting founder and family-owned businesses in sectors such as food manufacturing and specialty manufacturing. They are committed to leveraging their operational approach to foster growth and stability in their investments.
Frequently Asked Questions
What companies were involved in the sale?
The sale involved Union Capital’s portfolio companies, FITCRUNCH and Bakery Barn, which were acquired by 1440 Foods.
What was the role of Union Capital in this transaction?
Union Capital played a significant role in developing both FITCRUNCH and Bakery Barn, enhancing their operations and market presence before the sale.
Who are the leading figures in FITCRUNCH and Bakery Barn?
The key figures include Robert Irvine, the Co-Founder of FITCRUNCH; Matt Cruny, CEO of Bakery Barn; and Patrick Cornacchiulo, CEO of FITCRUNCH.
What financial advisors were involved?
Piper Sandler & Co. acted as the lead financial advisor for FITCRUNCH and Bakery Barn, while William Blair & Company LLC took the lead for 1440 Foods.
What are the future prospects for FITCRUNCH and Bakery Barn?
With the new ownership under 1440 Foods, both brands are expected to continue their expansion and innovation in the nutrition space, capitalizing on their strengthened market positions.
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