Capstone Partners Advised Uncle John’s Pride on its Recapitalization with Promise Holdings, Star Mountain Capital, and Maranon Capital
Capstone Partners advised Uncle John’s Pride, a family-owned producer of branded premium meats, on its recapitalization with Promise Holdings, a consumer-focused private holding company, and specialty finance firms Star Mountain Capital and Maranon Capital. Terms of the deal were not disclosed.
Established in 1974, Uncle John’s Pride is a family-owned producer of premium smoked sausages and meats. Offering a variety of fresh and smoked sausages, bacon, and quail through both retail and foodservice channels, the company features brand-named products under the banners of Uncle John’s Pride, Bean Brothers, Garcia Brand, Peppino Foods, and Realtree. With distribution through national grocery retailers and foodservice distributors including Walmart, Publix, Winn-Dixie, Sysco, US Foods, and Performance Food Group, the company has positioned itself as a premium brand with a strong, reputable foothold in the Southeastern region of the United States.
The team at Capstone did a great job drawing in multiple potential buyers and helped us see the value of staying in the NewCo for a second bite of the apple years down the road. Along the way, they were there to offer advice and direction in the process, and it was very comforting to know that we were dealing with a professional M&A firm that had been through this process many times. The bottom line is that we completed our deal at a fair price and with a group that we believe will be good partners for many years to come, and we couldn’t have done it without the professional help of Capstone and their team. Thank you!
Capstone Managing Director Brian Boyle commented, “This transaction allowed the UJP shareholders to monetize their initial investment in the company, with a substantial return, while still maintaining a meaningful equity stake. Going forward, the company is forecasting rapid growth fueled by powerful consumer trends towards high-protein diets and increased at-home dining trends.”
With the investment, Uncle John’s Pride will have the capital and resources necessary to expand beyond its established regional platform and pursue significant growth via additional private labeling.
Promise Holdings is a private holding company formed to invest in and help operate businesses with exceptional promise and potential. Led by its founder, Gordon C.C. Liao, Promise Holdings has worked with nearly 20 businesses over the last eight years, primarily in the dynamic consumer products and services industries. With a particular focus in the Food, Fashion, Beauty, and Leisure subsectors, Promise and its operating team have significant experience investing in and growing consumer businesses. For more information about Promise Holdings, please visit www.promise-holdings.com.
Star Mountain Capital is a specialized asset management firm focused exclusively on the U.S. lower middle market. Backed by an array of sophisticated institutional and high-net-worth investors, Star Mountain has developed a proprietary platform to provide investors with highly diversified access to the attractive risk-reward opportunities available from established businesses that lack the scale necessary to access the more efficient U.S. capital markets. For more information about Star Mountain Capital, please visit www.starmountaincapital.com.
Maranon Capital, L.P. is an investment firm focused on private credit investments. Maranon’s competitive edge is its multi-product strategies that span the balance sheet with value-added financing and equity co-investments. Since 2007, Maranon has committed over $10 billion of capital. For more information about Maranon Capital, please visit www.maranoncapital.com.
The expert investment banking professionals on Capstone Partners’ Consumer Investment Banking team work with leading middle market companies operating in the Food and Beverage market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Consumer Investment Banking Team, contact us here.