The Riverside Company’s Latest Exit Tastes Like Sweet Success

The Riverside Company, a global investment firm focused on the smaller end of the middle market, has signed a definitive agreement with Warburg Pincus to sell FlavorSum, a leading manufacturer of natural flavor solutions for food & beverage companies. The proposed transaction is expected to close later in the third quarter, subject to the satisfaction of customary closing conditions.

FlavorSum develops and manufactures custom natural liquid flavors, extracts, and flavor systems used across food and beverage applications, primarily serving high-growth, disruptive brands. With core competencies in R&D and application support, the Company offers its customers standout flavor formulation capabilities, combined with industry-leading service and reliability.

“We’re incredibly proud of the work we’ve done throughout our partnership with FlavorSum,” said Riverside Managing Partner Loren Schlachet. “During our hold period, we elevated the business through intentional investments in sales and marketing, research and development, and scalable enterprise systems. We also completed a 35k sq. ft. manufacturing facility expansion to support FlavorSum’s rapid growth. These investments transformed FlavorSum into a solutions-focused flavor manufacturer and set the stage for the Company’s continued success.”

FlavorSum also benefitted from Riverside’s Flavor & Specialty Ingredient Advisory Board, which is comprised of industry experts that provide advice on industry trends and due-diligence, while also playing a role in deal sourcing.

“During our hold period, FlavorSum completed four complementary flavor company add-on acquisitions. These acquisitions helped expand the Company’s geographic footprint, broaden its portfolio of flavor solutions, and bring top-notch R&D and applications talent into the platform,” added Riverside Senior Partner Alan Peyrat. “It has been a pleasure working with the FlavorSum team these past five years and we wish the FlavorSum and Warburg Pincus team the best of luck in their next chapter together.”

“Our partnership with Riverside has been a key component of our success, and we deeply appreciate the guidance they have provided,” said FlavorSum CEO Brian Briggs. “We plan to continue building upon our team and pure-play flavor platform, focused on providing our customers a best-in-class solutions toolkit, consistent operational excellence, and an outstanding customer experience.”

Working with Schlachet and Peyrat on this deal were Vice President Liz Burke, Assistant Vice President David Myers, Analyst Mohammed Alawami, Operating Partner Tom Barrett, and Finance Director Andrew Larew. Houlihan Lokey and Cascadia Capital served as financial advisors to FlavorSum and The Riverside Company.