Greenwich, Conn.-based private equity fund Brynwood Partners VII L.P. agreed to acquire Sunny Delight Beverages Co. from J.W. Childs Associates, a Boston-based private equity firm. The price to be paid by Brynwood is reportedly about $195 million, including debt.
Brynwood Partners also owns the Harvest Hill Beverage Company which markets Juicy Juice products, the Hug juice brand and Daily’s Cocktails brand.
Sunny Delight, a Cincinnati-based company, was formed by J.W. Childs in 2004 when it acquired the iconic SunnyD brand from The Procter & Gamble Company. Sunny Delight ranked 25th on the 2015 Deloitte Cincinnati USA 100 list of the largest privately held companies in the Cincinnati region. It had 2014 revenues of $457 million and 535 employees, according to the Cincinnati Enquirer.
“The iconic Sunny Delight brand, with its highly recognizable bottle design, has a loyal customer following and is an important brand for retailers in the U.S. and Canada,’ said Henk Hartong III, chairman and CEO, Brynwood Partners. “We are also excited about the company’s four manufacturing facilities as they provide Sunny Delight with significant manufacturing flexibility to provide our retail partners with new, innovative products in a timely manner.”
“We are pleased with the results of this transaction which, together with our prior divestitures of Sunny Delight’s European divisions, represents a successful outcome for our firm. We wish Sunny Delight and Brynwood the best of success,” said Adam Suttin, partner, J.W. Childs Associates.
“Our team looks forward to working collaboratively with Brynwood’s management as we develop a detailed business plan for implementation following regulatory approval which is expected in the first quarter of 2016,” said Sunny Delight’s president and CEO, Billy Cyr.
Sunny Delight Beverages Co. is a leading producer, distributor and marketer of juices, juice drinks and flavored waters in North America. Its brands include the market leading Sunny Delight juice drink, Veryfine juices and drinks, and Fruit2O flavored and sparkling flavored waters. The company operates four plants across the U.S. that service both refrigerated and shelf stable distribution systems and supply a wide range of customers in the grocery, club, mass merchandise, convenience, dollar and drug channels.
J.W. Childs Associates is a Boston-based private equity firm focused on investing in middle-market growth companies. Since inception in 1995, J.W. Childs has invested in excess of $3 billion of equity capital in more than 40 best-in-class companies across the consumer, specialty retail and healthcare industries. The firm’s success has been built on its industry focus and the extensive operating expertise of its partners. J.W. Childs is investing out of its fourth private equity fund, which was raised in 2014.
Brynwood Partners, founded in 1984 and based in Greenwich, Conn., is an operationally-focused private equity firm that makes control investments in North American-based lower middle market companies in the consumer sector, and currently manages more than $725 million of private equity capital.
Harvest Hill Beverage Company, based in Stamford, Conn., was formed by Brynwood Partners VII L.P. in June 2014 to acquire the iconic Juicy Juice brand from Nestle USA, Inc. Juicy Juice is the largest 100% juice brand in the U.S. and is focused on the children’s segment. The company markets Juicy Juice products in single-serve and multi-serve formats to the retail and foodservice channels. In March 2015, Harvest Hill acquired American Beverage Corporation from Wessanen, a publicly-traded food and beverage company based in Holland. With the American Beverage Corporation acquisition, Harvest Hill added the Hug juice brand and Daily’s Cocktails brand. The company intends to grow both organically and through strategic add-on acquisitions.