Secondary Buyout • Food

Windjammer Capital Acquires S.T. Specialty Foods

On December 17, 2008, mezzanine finance firm Windjammer Capital acquired food company S.T. Specialty Foods from Swander Pace Capital

Acquisition Context
  • This is Windjammer Capital’s 1st transaction in the Food sector.
  • This is Windjammer Capital’s 30th transaction in the United States.
  • This is Windjammer Capital’s 3rd transaction in Minnesota.
Investment Fate
  • S.T. Specialty Foods was sold to a publicly-traded strategic buyer in 2010 for 180M USD.

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M&A Deal Summary

Date December 17, 2008
Target S.T. Specialty Foods
Sector Food
Buyer(s) Windjammer Capital
Sellers(s) Swander Pace Capital
Deal Type Secondary Buyout

Target Company

S.T. Specialty Foods

Brooklyn Park, Minnesota, United States
S.T. Specialty Foods, Inc. is a manufacturer of private label and store branded, dry shelf-stable dinners, which include macaroni and cheese dinners, add-meat skillet dinners, rice dinners, and meatless side dishes. S.T. sells products to food retailers and wholesalers, and has leveraged its leadership in private label macaroni and cheese into a rapidly growing position in the dry-dinner category.
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Buyer Overview 1

Buyer

Windjammer Capital

Newport Beach, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1990
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Windjammer Capital is a private investment firm that invests control equity, minority equity, and/or subordinated debt in growing middle-market businesses. The Firm seeks to invest between $50 and $200 million of equity or subordinated debt in companies that generate at least $8 million of EBITDA. Windjammer focuses on North American-based opportunities and prefers companies with scalable business models, differentiated products/services, and that operate in defensible markets. Broad sectors of interest include manufacturing, business services and value-added distribution. Windjammer does not invest in high technology, real estate, and financial services companies. Windjammer Capital was formed in 1990 and has offices in Waltham, Massachusetts and Newport Beach, California.


Deal Context for Buyer #
Overall 30 of 52
Sector: Food 1 of 1
Type: Secondary Buyout 5 of 18
State: Minnesota 3 of 5
Country: United States 30 of 52
Year: 2008 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-01 Infinite Electronics

Irvine, California, United States

Infinite Electronics is a supplier of engineering-grade radio-frequency technology products, operating under its proprietary brands for a global engineering base. IRF serves the high urgency, technical needs segment of the global RF component market, and differentiates itself through a broad selection of RF components available for same-day shipping, custom cable design and assembly capabilities for 250,000+ unique configurations, and significant technical expertise in bringing new products to the market and providing solutions for R&D engineers. Infinite Electronics was formed in 1972 and is based in Irvine, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-24 Ohio Community Media

Tipp City, Ohio, United States

Ohio Community Media LLC is a community newspaper business that operates numerous paid daily and weekly papers.

Sell -

Seller Profile 1

SELLER

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 Context for Seller #
Overall 12 of 42
Sector: Food 5 of 22
Type: Secondary Buyout 5 of 15
State: Minnesota 1 of 1
Country: United States 12 of 35
Year: 2008 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-08-07 Lavo

Montreal, Quebec, Canada

Lavo, Inc. is an independent manufacturer and marketer of laundry and cleaning products in Canada. Lavo distributes and markets under owned brands La Parisienne, Hertel, Springtime, Old Dutch, Arctic Power, and ABC. These brands carry a strong reputation among Canadian consumers, and are sold in grocery stores, pharmacies, mass retailers, and warehouse clubs. Lavo is also a leading private label laundry product supplier, and markets bulk bleach to the industrial sector.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-04-09 Applegate Farms

Bridgewater, New Jersey, United States

Applegate Farms LLC is a provider of high-quality natural and organic hot dogs, bacon, sausages, deli meats, cheese and frozen products.

Buy -