Less than a year after it was sold to a private equity firm, Minnesota-based Cold Spring Brewing Company is now on the buy side of a deal.
Brynwood Partners, a Connecticut-based private equity firm with existing investments in a variety of food and beverage companies, yesterday announced that Cold Spring Brewing had purchased Carolina Beverage Group.
Previously owned by Dallas private equity firm SunTx, Carolina Beverage Group LLC. – headquartered in Charlotte, North Carolina – specialized in co-packing a variety of non-alcoholic beverages, including energy drinks, soda and teas.
The combined company, called Carolina Beverage Group, has more than 650,000 sq. ft. of manufacturing space and 1.7 million sq. ft. of warehousing, a press release noted.
“We are excited about the opportunity to create a company with a significant manufacturing footprint in the value-added beverage space that will strengthen our ability to service both national branded and retail customers with innovative products in flexible packaging solutions,” Henk Hartong III, chairman and CEO of Brynwood Partners, said via the release.
The company, which manufacturers non-alcoholic beverages, craft beer, FMBs and other ready-to-drink products, has operations in Cold Spring, Minnesota; Mooresville, North Carolina; and Fort Worth, Texas.
A press release with additional information is included below.
Cold Spring Brewing Company Acquires Carolina Beverage Group, LLC
GREENWICH, Conn., May 16, 2018 /PRNewswire/ — Brynwood Partners VII L.P.’s and Brynwood Partners VIII L.P.’s (collectively, “Brynwood”) wholly-owned portfolio company, Cold Spring Brewing Company (“Cold Spring”), announced today that it had acquired 100% of the stock of Carolina Beverage Group, LLC from SunTx Capital Partners and other selling shareholders. Terms and conditions of the transaction were not disclosed.
The combined company is being named Carolina Beverage Group (“Carolina Beverage”) and will be headquartered in the Charlotte, NC area. By combining Cold Spring and Carolina Beverage Group, LLC, Brynwood has created one of the largest independently-owned contract manufacturers in the beverage sector for numerous well-known national and international brands. The company’s blue-chip customers include brand owners of well-known energy drinks, sparkling waters, teas, cocktails, flavored malt beverages, craft beers and other ready-to-drink beverages. The company also produces private label beverages for leading retailers throughout the U.S.
Carolina Beverage manufacturers its high-quality products out of its three strategically located state-of-the-art manufacturing facilities located in Cold Spring, MN; Mooresville, NC and Fort Worth, TX. With over 650,000 sq. ft. of flexible manufacturing space and 1.7 million sq. ft. of warehouse availability, the company offers a broad range of value-added production services in a variety of packaging options, including plastic and aluminum cans and glass bottles.
“We are very pleased to announce the acquisition of Carolina Beverage Group, LLC by Cold Spring,” said Henk Hartong III, Chairman and CEO of Brynwood Partners. “We are excited about the opportunity to create a company with a significant manufacturing footprint in the value-added beverage space that will strengthen our ability to service both national branded and retail customers with innovative products in flexible packaging solutions.” Mr. Hartong continued, “Value added manufacturing is an important sector and an area that Brynwood continues to make significant investments in.”
“On behalf of Brynwood Partners, I would like to express my sincere gratitude to SunTx and the other selling shareholders,” said Ian MacTaggart, President and COO of Brynwood Partners. “While Brynwood VII already had an investment in Cold Spring, this marks Brynwood VIII’s first investment since the fund closed in January 2018 with $649 million of committed capital. We look forward to supporting Carolina Beverage’s loyal employees and growing its operations both organically and through potential strategic add-on acquisitions.”
Brynwood Partners did not retain an investment banking advisor but was represented by Holland & Knight LLP on legal matters. Carolina Beverage Group, LLC retained Cascadia Capital LLC as its investment banking advisor and was represented by Haynes and Boone, LLP on legal matters.
About Brynwood Partners
Founded in 1984 and based in Greenwich, CT, Brynwood Partners is an operationally-focused private equity firm that makes control investments in North American-based lower middle market companies. The firm targets non-core brands or companies operating exclusively in the consumer sector.
Brynwood Partners currently manages more than $1.1 billion of private equity capital for its limited partners, which include U.S. and international pension funds, fund-of-funds, endowments, high net worth family investment offices and financial institutions. For more information on Brynwood Partners, please visit www.brynwoodpartners.com.