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Portland, OR – November 12, 2010; Basic American Foods announced the sale of its refrigerated soup and entrée business to Main Street Capital Holdings and Sun Capital Partners, Inc.
Transaction Summary
City Capital Advisors, LLC was hired as the exclusive financial advisor to Basic American, Inc. in connection with the sale of Harry’s Fresh Foods. The sale of the business furthers Basic American Food’s overall strategy to divest non-core businesses and strengthen its market leadership in its retained product category and business. City Capital contacted both strategic and financial parties and managed a competitive process toward a fully-negotiated definitive agreement and subsequent closing with Sun Capital Partners, Inc. and Main Street Capital Holdings.
Terms of the agreement were not disclosed.
About Basic American Foods
Family owned and operated since 1933, Basic American Foods is a global leader in providing value-added, branded shelf stable potato and bean products to the foodservice and consumer foods channels. Its principal brands delivering preparation convenience with scratch-like taste include Nature’s Own Potato Pearls®, Potato Pearls®, Potato Pearls Excel®, Golden Grill®, Redi Shred®, Classic Casserole®, Santiago®, Nana’s OwnTM, Idaho SpudsTM, and Hungry Jack® (a licensed trademark of The J.M. Smucker Company).
About Harry’s Fresh Foods
The Harris Soup Company d/b/a Harry’s Fresh Foods, a wholly-owned subsidiary of Basic American, Inc. was acquired by Basic American, Inc. in July 2007 as part of a strategy to diversify outside the dry foods sector. Harry’s, based in Portland, Oregon, is a leading North American producer of premium-quality, freshly prepared, home-style refrigerated soups, chili, entrées, sides, sauces and desserts.
About Main Street Capital Holdings
Founded in 1994, Main Street Capital Holdings, L.L.C. is a Pittsburgh based private equity firm that acquires companies that operate in a broad range of industries at the lower end of the middle market. Main Street has significant experience in the food industry including highly successful investments in companies such as Lloyds Barbeque and Wisconsin Cheese Group.
About Sun Capital Partners
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in more than 240 companies worldwide with combined sales in excess of $40 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. Sun Capital Partners, Inc. has related investments in the food and restaurant industries including Cangro Foods, Sunrise Growers / Frozsun, Boston Market Corporation, Garden Fresh and Real Mex Restaurants.
About City Capital Advisors
City Capital is a results-oriented investment and merchant banking advisory firm dedicated to delivering business owners optimal performance in capitalizing on the value of their companies. Client engagements are managed by experienced senior bankers who have built successful practices at renowned investment banks, but sought a highly focused environment from which to advise their clients in a highly responsive manner. Advisory capabilities include mergers and acquisitions, typically in the $30 million to $500 million value range, leveraged recapitalizations, private capital formation for growth/acquisition/ownership transition, financial restructurings and managing direct investments. Long standing relationships with strategic buyers and financial sponsors with interests across a wide variety of industries enables City Capital to offer its clients unique and proprietary execution capabilities. Since becoming a FINRA registered broker-dealer in 2007, City Capital has successfully advised on transactions totaling in excess of $1 billion.