Arbor Investments Sells Great Kitchens, inc. to ARYZTA AG (Sale Achieves Return of 16.9X Invested Capital)
FOR IMMEDIATE RELEASE
Chicago, Illinois-based Arbor Investments announced that it has sold its portfolio company Great Kitchens, Inc. to ARYZTA AG (SIX: ARYN) for US$180 million, in a transaction that generated an internal rate of return of 66% and produced 16.9 times its original investment. Headquartered in Romeoville, Illinois, Great Kitchens, is one of the largest suppliers of pizza and appetizers with a focus on the deli segment of the North American retail grocery channel. BMO Capital Markets and DLA Piper served as Great Kitchens’ investment bankers and legal counsel, respectively.
Arbor originally acquired the business in October 2004, installing Dennis Malchow, Arbor Operating Partner and former CEO of The Martin-Brower Company, as CEO. In 2008, former Kraft Senior Executive Jerry Coghlan joined the management team as President. Under Arbor’s ownership and the leadership of Messrs. Malchow and Coghlan, Great Kitchens grew four-fold and has emerged as the largest take and bake pizza manufacturer in North America.
The cornerstone of Arbor’s growth strategy for the Company was the 2008 completion of a new, state-of-the-art USDA manufacturing facility in Romeoville, IL, located approximately 35 miles from downtown Chicago and ideally situated in the center of the country for national distribution. Great Kitchens’ products have been a tremendous success story at leading national retailers, garnering the Company numerous prestigious supplier awards. Significant cost savings and productivity improvements at the new facility and a strong customer pipeline have positioned Great Kitchens for long-term growth and continued success.
Gregory Purcell, CEO of Arbor Investments, said “Our Great Kitchens investment was an exceptional opportunity and we are proud to have had the chance to build the Company into the recognized industry leader it is today.”
About Arbor Investments
Chicago, Illinois-based Arbor Investments, LLC is one of the only private equity firms in North America that invests exclusively in the food, beverage and related industries. Arbor has $270 million of capital under management across two private equity funds. The firm specializes in acquiring middle market food and beverage companies that provide products and/or services to traditional food & beverage channels. Arbor primarily makes control investments in established food, beverage and related companies. The firm distinguishes itself with intensive portfolio oversight, its singular food & beverage focus and a team of professionals with over 300 years of combined experience in financing and operating food & beverage businesses. Since its founding in 1999 by principals Gregory Purcell and Joseph Campolo, Arbor has acquired or invested in 24 businesses generating aggregate revenues of over $1 billion.
For more information, please contact Arbor’s Kimberly Harrod at 312-981-3777 or visit Arbor at www.arborpic.com.