Transaction reinforces and strengthens
Hillshire Brands’ presence in frozen category; facilitates
extension into additional categories
The Hillshire Brands Company (NYSE: HSH) and Catterton Partners,
the leading consumer-focused private equity firm, today announced
that Hillshire Brands has signed a definitive agreement to acquire
Catterton portfolio company Van’s Natural Foods. Van’s is a leading
better-for-you food brand that delivers great taste, nutrition,
simple/clean ingredients and all-family appeal across multiple
product lines in frozen breakfast and snack foods. Hillshire Brands
will pay $165 million for Van’s, which is expected to have net
revenues of approximately $60 million in calendar year 2014. The
transaction is expected to close in May of 2014 pending regulatory
clearance.
“The Van’s brand is a terrific addition to our portfolio,” said
Sean Connolly, president and chief executive officer, The Hillshire
Brands Company. “Not only does it expand our presence in the frozen
category, it also gives us a proven health and wellness brand with
extendability beyond frozen.”
Van’s Natural Foods will become part of Hillshire Brands’ Retail
segment, pairing with well-known brands such as Jimmy Dean,
Hillshire Farm and Ball Park. Van’s Natural Foods’ management will
continue to lead the business.
“As a leader in branded foods including breakfast products,
Hillshire Brands is an ideal strategic partner for Van’s,” said
Eric Kufel, CEO, Van’s Natural Foods. “Our positioning in the large
and growing wellness consumer lifestyle segment is a perfect
complement to Hillshire Brands’ product portfolio. We are pleased
to have worked with Catterton, which helped drive our significant
growth and market expansion into multiple new categories. I am
truly excited to be joining with Hillshire and beginning the next
phase of Van’s growth journey.”
Van’s Natural Foods is based in Phoenix and is a leading
simple/clean ingredient food brand in frozen breakfast and snack
foods including waffles, pancakes, cereal, crackers and snack bars.
Van’s frozen breakfast and snack foods are available at grocery
stores, mass merchandise stores and natural food retailers
nationwide.
Marc Magliacano, a Partner at Catterton, said, “We are proud of
the brand and distinctive market positioning that we and the Van’s
management team have created over the past few years. This
transaction is a win for all parties involved and we are confident
and excited that under Hillshire's ownership Van’s will continue to
experience significant growth and capitalize on new
opportunities.”
Centerview Partners served as financial advisor and Stinson
Leonard Street served as legal advisor to Hillshire Brands.
Houlihan Lokey served as financial advisor and Gibson Dunn &
Crutcher served as legal advisor to Van’s in connection with the
transaction.
About The Hillshire Brands Company
The Hillshire Brands Company (NYSE: HSH) is a leader in branded
foods. The company generated approximately $4 billion in annual
sales in fiscal 2013, has more than 9,000 employees, and is based
in Chicago. Hillshire Brands’ portfolio includes iconic brands such
as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee
frozen bakery and Chef Pierre pies, as well as artisanal brands
Aidells, Gallo Salame and Golden Island premium jerky. For more
information on the company, please visit
www.hillshirebrands.com.
About Van’s
Van’s Natural Foods, based in Phoenix, is the leading foods
brand in gluten-free and allergy-friendly, frozen breakfast and
snack foods including waffles, pancakes, cereal, crackers and snack
bars. Van’s frozen breakfast and snack foods are available at
grocery stores, mass merchandise stores and natural food retailers
nationwide. For more information, please visit
www.vansfoods.com.
About Catterton Partners
Catterton Partners is the leading consumer-focused private
equity firm with more than $4.0 billion currently under management
and a twenty-five year track record of success in building high
growth companies. Since its founding in 1989, Catterton has
leveraged its category insight, strategic and operating skills, and
network of industry contacts to establish one of the strongest
private equity investment track records in the middle market.
Catterton Partners invests in all major consumer segments,
including Food and Beverage, Retail and Restaurants, Consumer
Products and Services, Consumer Health, and Media and Marketing
Services. Catterton's investments include: Kettle Foods, Wellness
and Nature’s Variety Pet Food Companies, Odwalla, CorePower Yoga,
Sweet Leaf Tea, Restoration Hardware, Outback Steakhouse, Noodles
& Company, PIADA, Pirch, Frederic Fekkai, Build-A-Bear
Workshop, and P.F. Chang’s, to name a few. More information about
Catterton Partners can be found at www.cpequity.com.
Forward-Looking Statements
This release contains forward-looking statements regarding
Hillshire Brands' business prospects and future financial results
and metrics. Forward-looking statements are typically preceded by
terms such as “will,” “anticipates,” “intends,” “expects,” “plans,”
“likely” or “believes” and other similar terms. These
forward-looking statements are based on currently available
competitive, financial and economic data and management's views and
assumptions regarding future events and are inherently
uncertain.
Investors must recognize that actual results may differ from
those expressed or implied in the forward-looking statements, and
the company wishes to caution readers not to place undue reliance
on any forward-looking statements. Among the factors that could
cause Hillshire Brands' actual results to differ from such
forward-looking statements are those described under Item 1A, Risk
Factors, in Hillshire Brands' most recent Annual Report on Form
10-K, as well as factors relating to:
- The consumer marketplace, such as (i)
intense competition, including advertising, promotional and price
competition; (ii) changes in consumer behavior due to economic
conditions, such as a shift in consumer demand toward private
label; (iii) fluctuations in raw material costs, Hillshire Brands'
ability to increase or maintain product prices in response to cost
fluctuations and the impact on profitability; (iv) the impact of
various food safety issues and regulations on sales and
profitability of Hillshire Brands' products; and (v) inherent risks
in the marketplace associated with product innovations, including
uncertainties related to execution and trade and consumer
acceptance;
- Hillshire Brands' relationship with its
customers, such as (i) a significant change in Hillshire Brands'
business with any of its major customers, such as Wal-Mart, its
largest customer; and (ii) credit and other business risks
associated with customers operating in a highly competitive retail
environment;
- Hillshire Brands' spin-off of its
international coffee and tea business in June 2012, including
potential tax liabilities and other indemnification obligations;
and
- Other factors, such as (i) Hillshire
Brands' ability to generate margin improvement through cost
reduction and productivity improvement initiatives; (ii) Hillshire
Brands' credit ratings, the impact of Hillshire Brands' capital
plans on such credit ratings and the impact these ratings and
changes in these ratings may have on Hillshire Brands' cost to
borrow funds and access to capital/debt markets; and (iii) the
settlement of a number of ongoing reviews of Hillshire Brands'
income tax filing positions and inherent uncertainties related to
the interpretation of tax regulations in the jurisdictions in which
Hillshire Brands transacts or has transacted business.
For Hillshire Brands:Media: Mike Cummins,
+1.312.614.8412Analysts: Melissa Napier, +1.312.614.8739orFor
Catterton:Andi Rose / Bryan DarrowJoele Frank, Wilkinson
Brimmer Katcher212-355-4449