Growth Potential Seen for At-Home Foods Market
Middle market investment banking firm Capstone Partners sees significant growth potential for established brands in the at-home foods market with the recent recapitalization of Uncle John’s Pride, a family-owned producer of branded premium meats in the consumer food and beverage sector.
Capstone advised Uncle John’s Pride on the transaction and says the deal highlights influential trends in the at-home foods market. Following the pandemic-induced spike in at-home dining and a growing consumer emphasis on health, wellness and convenience, demand for high-quality proteins to prepare at home has climbed.
With a host of branded products under multiple banners — including Bean Brothers, Peppino Foods, Realtree and more — and distribution through both retail and foodservice channels such as Walmart, Publix, and Winn-Dixie, Uncle John’s Pride has positioned itself as a premium brand with a strong foothold in the Southeastern United States, according to Capstone. UJP’s established regional platform, blue-chip customer base, premium product portfolio, and proven acquisition history position them well to capitalize on these favorable industry trends and robust consumer demand, making them an attractive target for investment.
“This transaction allowed the UJP shareholders to monetize their initial investment in the company, with a substantial return, while still maintaining a meaningful equity stake,” said Capstone Managing Director Brian Boyle. “Going forward, the company is forecasting rapid growth fueled by powerful consumer trends towards high-protein diets and increased at-home dining trends.”
Financing was provided by Promise Holdings, a consumer-focused private holding company, and specialty finance firms Star Mountain Capital and Maranon Capital. With the investment, Uncle John’s Pride will have the capital and resources necessary to expand beyond its established regional platform and pursue significant growth via additional private labeling.
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