Clearspring Capital Partners acquires Canadian confectioner

  • 2 November 2020
  • M&A
Private equity firm says it will provide funding to grow Regal confections

Toronto-based private equity firm Clearspring Capital Partners has acquired Regal Confections, headquartered in Laval, Québec. The company’s Clearspring Fund III acquired a majority interest in the confectionery and premium chocolate products firm.

Regal Confections was founded in Montréal 58 years ago. During peak periods, it employs more than 300 people in four distribution centres, a co-packing operation and a production plant.

Joe Neufeld, chairman emeritus of Regal Confections, said: “Regal is the proud custodian of world-renowned confectionery and gourmet brands that Canadians recognise instantly. We have been partnering with leading manufacturers and retailers and contributing to their success for nearly 60 years.”

Regal Confections’ president and chief executive Hani Basile added: “When Walter Neufeld founded Regal Confections in 1962, he knew that consumers instinctively respond to quality and consistency. In keeping with these principles, Clearspring Capital Partners is a perfect fit for us.”

Regal stated it will pursue a growth strategy with capital and support from Clearspring, whose principal Milap Choksey said: “Numerous growth opportunities lie ahead for Regal Confections. We look forward to investing in people and in infrastructure to strengthen the portfolio of products and brands, and bolstering Regal’s national leadership as an independent value-added distributor in the candy, chocolate and gourmet foods segments.

Marie-Claude Boisvert, partner at Clearspring Capital Partners, added: “We are impressed with the track record of growth at Regal, their enduring brand partner and customer relationships, and the company’s ability to build and to maintain brand presence in a highly competitive marketplace. Regal and Clearspring share the same values and we are confident that this partnership will benefit customers, suppliers and employees alike,”

The acquisition was facilitated by Investissement Québec’s consulting services and financial support. Guy LeBlanc, president and chief executive of Investissement Québec, said: “By providing our support for this acquisition, we are helping a major player in the confectionery sector pursue its manufacturing activities here in Québec, while contributing to supporting its growth strategy and developing its export initiatives.”