Brynwood Partners, the Greenwich, Connecticut-based private equity firm behind Harvest Hill Beverage Company, has reached an agreement with J.W. Childs to purchase Sunny Delight Beverages Co. The deal, announced via press release Thursday, will see Brynwood Partners acquire Sunny Delight’s three beverage brands – Sunny D, Fruit2O and Veryfine – and the company’s four production facilities, located across the United States. The company did not disclose financial details of the purchase.
Sunny Delight, which employs 480 people and generates more than $400 million in annual revenue, will operate separately from Brynwood Partners’ portfolio company Harvest Hill, which markets and sells similarly-minded children’s beverage brands Juicy Juice, Little Hug, Big Hug, Big Burst and Guzzler, as well as Daily’s cocktail mixers. However, Brynwood Partners chairman and CEO Henk Hartong III indicated in the press release that the sister companies “will explore ways to seek synergies that could benefit both companies.”
“This marks Brynwood VII’s second operating platform in the beverage sector and is a significant investment for our firm,” added Brynwood Partners president and COO Ian MacTaggart. “The operating and industry knowledge we have gained as a result of our investment in Harvest Hill will be a benefit as we collaboratively work with Sunny Delight’s management team to create long-term shareholder value for our investors.”
Formed in June of 2014 following Brynwood Partners’ acquisition of the Juicy Juice brand from Nestlé USA, Harvest Hill paid $55 million for American Beverage Corporation in March of 2015, taking on Little Hug, Big Hug, Guzzler and Daily’s.
J.W. Childs Associates, a Boston private equity firm specializing in leveraged buyouts originally purchased Sunny Delight from Procter & Gamble in 2004 for an undisclosed amount. In 2010 Sunny Delight sold off the European arm of its business to Orangina Schweppes of France.
Billy Cyr, the CEO of Sunny Delight, said that he and his team are excited to work with Brynwood.
“Our team looks forward to working collaboratively with Brynwood VII’s management as we develop a detailed business plan for implementation following regulatory approval which is expected in the first quarter of 2016,” Cyr said in a press release. “Additionally, we have enjoyed our partnership with the team at J.W. Childs and greatly value the support, vision and expertise they brought to our business over the past eleven years.”