M&A Deal Summary

Swander Pace Capital and Stellus Capital Management Acquire Cafe Valley Bakery

On September 17, 2019, private equity firms Swander Pace Capital and Stellus Capital Management acquired food company Cafe Valley Bakery

Acquisition Highlights
  • This is Swander Pace Capital’s 24th and Stellus Capital Management’s 1st transaction in the Food sector.
  • This is Swander Pace Capital’s 37th and Stellus Capital Management’s 16th transaction in the United States.
  • This is Swander Pace Capital’s 2nd and Stellus Capital Management’s 2nd transaction in Arizona.

M&A Deal Summary

Date 2019-09-17
Target Cafe Valley Bakery
Sector Food
Buyer(s) Swander Pace Capital
Stellus Capital Management
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) Cody Peak Advisors (Financial)

Target

Cafe Valley Bakery

Phoenix, Arizona, United States
Cafe Valley Bakery is a manufacturer of croissants and sweet baked goods including cakes, muffins, coffee cake bites, and loaf cakes. The company operates as a wholesale bakery serving the in-store bakery, club store, mass merchandise, foodservice, and convenience-store segments. Cafe Valley Bakery was founded in 1987 and is based in Phoenix, Arizona.

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Buyer(S) 2

Buyer

Swander Pace Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 1.8B USD
Size Large
Type Sector Focused
DESCRIPTION

Swander Pace Capital (SPC) is a private equity firm focused on investing in North American middle-market consumer products companies. SPC looks for companies exhibiting strong growth potential and sales of up to $500 million. Specific areas of interest include food/beverage, household products, health living, packaging, personal care, pet products, sporting goods, specialty apparel, and specialty distribution. Prospective investment situations include management-led buyouts, consolidations, divestitures, turnarounds, recapitalizations, and growth capital financings. SPC was formed in 1996 and has offices in San Francisco, California; Bedminster, New Jersey; and Ontario, Canada.


DEAL STATS #
Overall 45 of 52
Sector: Food M&A 24 of 27
Type: Buyout (LBO, MBO, MBI) M&A Deals 29 of 34
State: Arizona M&A 2 of 2
Country: United States M&A 37 of 42
Year: 2019 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-25 Bragg Live Food Products

Santa Barbara, California, United States

Bragg Live Food Products is a provider of health-focused food and dietary products including condiments, seasonings, dressings, and ready-to-drink beverages. Bragg Live Food Products was founded in 1912 and is based in Santa Barbara, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-10-21 Passport Foods

Ontario, California, United States

Passport Foods is a manufacturer and distributor of internationally-flavored foods to foodservice and retail channels in North America. Today Passport offers over 125 product SKUs across a comprehensive range of authentic, boldly-flavored product categories to food retailers and restaurants around the country. Headquartered in Southern California, Passport Foods has over 170 employees and was founded in 1978.

Sell -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 3.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $20 to $100 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


DEAL STATS #
Overall 16 of 86
Sector: Food M&A 1 of 3
Type: Buyout (LBO, MBO, MBI) M&A Deals 6 of 23
State: Arizona M&A 2 of 4
Country: United States M&A 16 of 83
Year: 2019 M&A 7 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-08-30 Naumann Hobbs Material Handling

Phoenix, Arizona, United States

Naumann Hobbs Material Handling is a full-service material handling dealership that leases, sells, and services a variety of electric and internal combustion forklifts and other commercial products. Naumann Hobbs operates along five lines of business that work together to provide the most attractive value proposition in this sector in the southwestern United States. Naumann Hobbs Material Handling was founded in 1949 and is based in Phoenix, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-01-09 SBI

Southlake, Texas, United States

SBI is a Go-to-Market Growth Advisory, offering collaborative consulting, go-to-market benchmarks and data, and advisory services forged from serving as strategic implementers who have owned and operated marketing and sales at some of the world’s most successful growth companies. SBI was founded in 2006 and is based in Southlake, Texas.

Buy -