The private equity firm, which holds ownership of Hometown Food Company, is currently exploring the potential sale of the renowned producer of Pillsbury‘s shelf-stable baking products and Birch Benders, as indicated by insiders familiar with the matter.
Having held ownership of Hometown for the past five years, Brynwood Partners is collaborating with the investment bank Houlihan Lokey (HLI.N) to initiate a new sales process. According to sources, the valuation of Hometown in this process is anticipated to be around $800 million.
Hometown generates around $90 million in adjusted earnings before interest, taxes, depreciation, and amortization over a 12-month period.
The sources sought anonymity as the matter is confidential. Brynwood and Houlihan Lokey declined to provide comments, while Hometown did not respond.
Hometown provides products to grocery stores, convenience stores, wholesalers, and various other distribution channels.
In 2018, Brynwood acquired the Pillsbury shelf-stable baking business, along with Hungry Jack, Funfetti, and other assets, from the J.M. Smucker company for $375 million. Subsequently, Brynwood established Hometown, based in Chicago, to facilitate the acquisition of these assets from Smucker.
In 2019, Hometown acquired the Arrowhead Mills and SunSpire brands from the Hain Celestial Group. Last year, it also completed the acquisition of Birch Benders from Sovos Brands. Birch Benders specializes in pancake and waffle mixes, frostings, and toaster waffles, offering options that cater to keto, paleo, and organic preferences.
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