Investment firm Permira is combining two US snacks businesses after snapping up Medora Snacks and Ideal Snacks.
A company backed by the Permira Funds signed definitive agreements to simultaneously purchase the New York state businesses.
Medora makes PopCorners popped corn products and has a presence in more than 50 countries, while Ideal is a related contract manufacturer which produces popped snacks for branded consumer packaged goods and retail customers.
Permira, which sold Birds Eye owner Iglo Group in April for €2.6bn to Nomad Foods, will combine the two under a single holding company called BFY Holdings.
“We are in the midst of a seismic shift within the food industry in which consumers are actively seeking out healthier snack products while not sacrificing taste,” Permira partner John Coyle said.
“With their proprietary popping technology, Medora and Ideal have a distinct advantage in the industry which has enabled them to offer innovative, healthier and tastier snacks to meet this growing consumer demand.”
The transaction, which is expected to close in the third quarter, is subject to certain regulatory approvals and customary closing conditions.
Akin Bay Company served as financial adviser to the Permira funds and Fried, Frank, Harris, Shriver & Jacobson provided legal advice. Houlihan Lokey was Medora and Ideal’s financial adviser and Pillsbury Winthrop Shaw Pittman served as legal adviser.
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