Dansk Specialty Foods, Inc., a privately held co-pack manufacturer of muffins and cakes to the supermarket channel, had achieved sales of $20 million and solid profitability
The two founder-entrepreneurs wanted to diversify their wealth and pursue other interests
Challenges
The key challenge was maximizing value in a sale while allowing the owner-operators to exit the business completely
This was particularly problematic for financial sponsors who wish to back existing management teams
Another challenge was gaining the attention of larger strategic food companies given the relatively small size of our client
Solution
Principals of FocalPoint were able to identify a universe of financial sponsors who already had investments in the industry, and thus, already had management teams in place to take over Dansk’s operations
We also obtained interest from one very large strategic buyer who was currently a supplier to our client but was looking to “vertically integrate”
By obtaining multiple offers for the business, we were able to generate competitive bidding
Ultimately Bunge Foods Corporation prevailed at a highly attractive multiple to the sellers
