Riverside’s Latest Exit Tastes Like Sweet Success
The Riverside Company, a global private equity investor focused on the smaller end of the middle market, has sold its investment in Parker Food Group (PFG), a leading developer and manufacturer of specialty value-added ingredients for large multi-national and emerging food and beverage brands. The buyer is an investment company of the Investindustrial private equity group.
Founded in 1926 as a manufacturer of speciality ingredients, PFG today is a go-to solutions provider of innovative, specialty ingredients that address critical customer requirements for use in baking, dairy, beverage, confectionary, ready-to-eat, snack and foodservice end markets. Riverside invested in the business in 2017, with a plan to drive growth through investments in infrastructure, people, processes and systems.
“We have enjoyed great success during our partnership with PFG over the past five years and look forward to seeing the company continue to thrive as part of Investindustrial’s portfolio,” said Riverside Senior Partner, Meranee Phing. “During our ownership, we delivered a highly successful organic growth strategy, built a world-class team, expanded the company’s R&D capabilities and broadened its blue-chip customer base.”
Shortly after the acquisition, Riverside invested more than $30 million to greenfield a state-of-the-art manufacturing facility in Fort Worth, Texas, increasing capacity by 3 to 4 times. Riverside also helped grow PFG through acquisition, with the 2020 add-on of Creative Food Ingredients adding significant scale and complementary product capabilities.
“Over the past five years, we have developed an enormously successful partnership with Riverside, helping us to deliver exceptional financial results,” said PFG’s CEO Greg Hodder. “We are now ideally positioned for further growth, with record revenue and opportunity pipeline across customers, end markets and channels. The recent brownfield of a newly acquired facility in Missouri will also help us to expand capacity for continued double-digit growth.”
The successful investment in PFG is another example of Riverside’s dedication to its industry specializations, with PFG at the cross-section of Riverside’s Consumer Products & Services and Specialty Manufacturing & Distribution Specializations. PFG also benefitted from Riverside’s Specialty Ingredients, Flavors & Fragrances Advisory Board as well as the expertise of Senior Advisor Richard Lan. Since 1988, the firm has invested in more than 140 consumer companies and more than 260 specialty manufacturing and value-added distribution companies globally across a wide range of categories and end markets. Working closely with management, Riverside fosters growth through a focused approach that pairs deep industry expertise along with the firm’s expansive global resources.
Working alongside Phing on the exit for Riverside were Principal Harrison Petts, Senior Associate Scott Henderson, Senior Associate Lukas Sontich, Operating Partner Ronald Krassin and Operating Finance Executive Rob Carraway. Senior Partner Anne Hayes led the capital market initiatives throughout the investment period.
Houlihan Lokey, William Blair, Jones Day, KPMG, and Deloitte advised Riverside and PFG on this transaction.