Hearthside Food Said to Seek $1 Billion With Bids Due This WeekJodi Xu
Hearthside Food Solutions LLC, which makes snacks sold under other companies’ brand names, may fetch offers of about $1 billion in a sale with final bids due this week, said people with knowledge of the matter.
BC Partners Holdings Ltd., Goldman Sachs Group Inc.’s private-equity arm and Oak Hill Capital Partners LP are the remaining bidders for Hearthside, which is being sold by Wind Point Partners LP, said the people, asking not to be named because the discussions are private.
Barclays Plc started an auction for Downers Grove, Illinois-based Hearthside late last year, seeking to sell the business for $1 billion, said the people. Hearthside’s earnings before interest, taxes, depreciation and amortization were around $120 million last year, according to one of the people.
Wind Point bought the business in 2009, data compiled by Bloomberg show. Hearthside, which makes pretzels and cookies for consumer-product companies in North America, sold a ready-to-eat cereals and granola-making business to Post Holdings Inc. last year, according to its website.
Representatives for BC Partners and Barclays declined to comment on the sale. Spokesmen for Wind Point and Oak Hill didn’t reply to phone calls and e-mails seeking comment.
Chicago-based Wind Point, which manages about $2.8 billion assets, also owns snack food maker Shearer’s Foods LLC and meat product maker Rupari Food Services Inc.