Permira, an international private equity firm, has announced that a company backed by the Permira funds has signed definitive agreements to simultaneously acquire Medora Snacks, LLC, Middletown, NY, and Ideal Snacks Holding Corp., Liberty, NY. Terms of the transaction, which is expected to close in the third quarter of 2015, were not disclosed.
Medora manufactures branded better-for-you snacks, including PopCorners, PopCorners Whole Grain, Pop Crinkles and popped bean chips. Ideal is a contract manufacturer of better-for-you diversified popped snacks.
The Permira funds will combine Medora and Ideal under a single holding company called BFY Holdings I, LLC. Zeke Alenick, founder of both Medora and Ideal, along with other members of management, will remain with BFY Holdings and own a minority stake in the company going forward. Medora and Ideal will maintain their current New York facilities.
“We are in the midst of a seismic shift within the food industry in which consumers are actively seeking out healthier snack products while not sacrificing taste,” says John Coyle, a Permira partner. “With their proprietary popping technology, Medora and Ideal have a distinct advantage in the industry, which has enabled them to offer innovative, healthier and tastier snacks to meet this growing consumer demand. With better-for-you snacking trends on the rise globally, BFY Holdings has tremendous potential to capitalize on the clear market opportunities, including expanding brand awareness and distribution of its existing products, and continuing to introduce new and exciting products. The Permira funds have a successful track record of investing in leading consumer companies, including those focused in the areas of healthy living, and we are excited to support BFY Holdings in pursuit of becoming the global leader in the better-for-you snack category.”