Shearer’s Foods is poised for a change in ownership as local investor Clayton Dubilier & Rice (CD&R) steps in to become the new owner of the US snacks business.
CD&R has reached an agreement to acquire Shearer’s from the Ontario Teachers’ Pension Plan (OTPP) fund for an undisclosed amount. Initial reports had suggested that the buy-out deal for Shearer’s could potentially be valued at $3 billion.
In August, initial indications surfaced that the Ontario Teachers’ Pension Plan (OTPP) was considering the possibility of selling Shearer’s, a private-label snack maker and co-manufacturer based in Ohio.
Confirming a deal had been struck yesterday (13 December), John Compton, CD&R operating partner and a former CEO of PepsiCo North America, said, “We have deep admiration and respect for Shearer’s, a leading business that shares our core values in a sector and operating model we know and understand well.”
CD&R partner JL Zrebiec added, “We have strong conviction in the differentiated manufacturing capabilities and category management the company provides and our goal is to support the team in further scaling operations and capturing the many opportunities ahead to better serve Shearer’s customers.”
Shearer’s CEO Mark McNeil said, “As Shearer’s enters a new phase of growth, we are excited to be joined by a team with the experience, expertise and resources to support our mission of producing high-quality, innovative and delicious snacks that we are proud to serve to our families, friends, customers and retailers.”
In addition to manufacturing private-label snacks and cookies, Shearer’s Foods, established in the early 1900s, engages in the co-manufacturing of a diverse range of products such as crisps, tortillas, popcorn, and pork rinds. The company is also involved in the production of organic, gluten-free, and non-GMO kosher salty snacks, featuring items like kettle-cooked potato crisps, cheese curls, and extruded snacks.
The corporation operates 17 manufacturing facilities spanning the United States and Canada.
After making its initial investment in Shearer’s in 2012, OTPP expanded its stake in 2015 by acquiring additional shares from private-equity firm Wind Point Partners. This move granted the pension fund majority ownership of Shearer’s.
On its exit from the business, Raymond Shiu, OTPP’s managing director for private capital, said, “Over the past decade, we have been proud to partner with the Shearer’s management team as it established itself as a market leader in North America for private-label and contract manufactured salty snacks, cookies and crackers. Shearer’s has achieved this position by consistently delivering high-quality and innovative products, while expanding its market presence.”
CD&R operates as a privately owned entity with its partners, maintaining offices in both New York and London.
The firm invests in a diverse array of industries, encompassing industrial, healthcare, consumer, technology, and financial services end markets.