FlexXray has announced a significant growth investment from Warburg Pincus, a global growth investor and Tilia Holdings, a Chicago-based private investment firm focused exclusively on the food and nutrition supply chain. Terms of the transaction were not disclosed.
FlexXray is a provider of x-ray inspection services focused exclusively on food safety. FlexXray assists leading food manufacturers with regulatory compliance and food safety issues by identifying and removing foreign contaminants from food. Hundreds of manufacturing plants in North America rely on FlexXray’s industry-leading expertise and customer service to salvage valuable products when contamination events occur in the normal course of the food manufacturing process. FlexXray was founded in 2001 and is headquartered in Arlington, TX.
“FlexXray provides a best-in-class solution to protect customer brands, retailer relationships, and most importantly, consumer health and safety. This investment represents a significant opportunity to further accelerate the growth of our business, while delivering an even stronger return on investment to our customers and creating important environmental benefits by reducing food waste. We believe that Warburg Pincus and Tilia are the ideal partners to support us in our next chapter and look forward to leveraging their global network and broad resources in the food safety space,” said Randy Jesberg, CEO, FlexXray. “I would also like to thank Levine Leichtman Capital Partners for their close partnership, invaluable contribution and strategic insight over the past four years.”
Warburg Pincus is an investor in food safety and food supply chain services, with current and historical investments in Certified Laboratories, Hygiena, GA Foods, SPINs, Aramark, Grubhub/Seamless, Duravant, and Trimark. Tilia is also an investor in the food and nutrition supply chain with current investments in Refrig-It, Certified Laboratories, Universal Pure, Proven Partners Group, Ellison Bakery, NutriScience Innovations, and Wheat Montana and historical investment in Safe Foods International Holdings.
“With the increased compliance through USDA and FDA regulations and focus on minimizing food waste, FlexXray is experiencing rapid market adoption and has significant growth opportunities ahead. The company’s mission-critical services, ensuring food product safety, is backed by an incredible management team and strong customer service,” said Stephanie Geveda, managing director, head of business services, Warburg Pincus. “We are excited to partner with Randy and the FlexXray team, alongside Tilia, to build upon FlexXray’s history of success to enhance and expand their offerings in this dynamic and growing market,” said Michael Pan, principal, Warburg Pincus.
“FlexXray is well-positioned to meet the growing consumer demand for a safe and environmentally-friendly food supply chain. The investment in FlexXray reflects our ongoing mission to invest in companies that help make the food supply chain safer for our customers and ultimately, the end consumer,” said Johannes Burlin, co-CEO, Tilia. “We are excited to partner with Warburg Pincus to bring this investment to life and extend the growth trajectory for the company.”
Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg Pincus and Tilia. Houlihan Lokey Capital, Inc. served as the lead financial advisor to FlexXray, with support from Robert W. Baird & Co., Incorporated, and Honigman LLP served as legal counsel in connection with the sale.
