Sovos Brands expands portfolio with Birch Benders acquisition
A portfolio company of Advent International, Sovos is set to enter the better-for-you breakfast space through Birch Benders’ product range
Sovos Brands, a portfolio company of private equity firm Advent International, has agreed to acquire Birch Benders, a fast-growing producer of a range of better-for-you pancake and waffle mixes, toaster waffles, and pancake and cups.
The acquisition is set to deepen Sovos’ position in the breakfast and snacking categories. The move also represents a significant step in the company’s mission to acquire and build one-of-a-kind brands that bring consumers taste and nutrition. The transaction is expected to be completed by the end of October.
Todd Lachman, president and chief executive of Sovos Brands, said: “With its absolutely delicious products that deliver against healthy consumer lifestyles such as paleo and keto diets, Birch Benders is the perfect next addition to our growing portfolio of one-of-a-kind brands. “
“Birch Benders shares Sovos’ commitment to making simple and delicious foods that use only the highest quality ingredients.
Lachman argued that with Sovos, Birch Benders’ portfolio has a proven ability to transform brands by unleashing growth and deepening consumer affinity. “We are thrilled to take Birch Benders to a new chapter of growth while diversifying Sovos Brands into new categories,” he added.
Sovos’ portfolio expansion
The acquisition will add a fourth brand to the Sovos portfolio, which also includes Rao’s, a line of pasta sauces, soups, frozen entrées and dry pasta; Noosa yoghurt; and Michael Angelo’s frozen entrées.
Since the acquisition of these brands, Sovos has reported double-digit sales growth while expanding profit margins.
With the Birch Benders acquisition, Sovos’ annual retail sales will be above $750 million.
Upon the addition of the Birch Benders brand to the Sovos portfolio, the company will play in seven large food categories: sauces, yoghurt, frozen entrées, pancake and waffle mixes, frozen waffles, soups and dry pasta.
The acquisition diversifies the company’s consumer base by strengthening its presence in the breakfast and snacking categories and bolsters the company’s ambitions to participate in more food occasions.
“We are absolutely thrilled to be joining the Sovos Brands family,” said Matt LaCasse, Birch Benders’ founder and chief executive. “We believe the wealth of experience and resources of the team at Sovos will allow us to reach even more consumers with our delicious, innovative, easy-to-make offerings made with nutrient-rich, quality ingredients.”
Birch Benders: A better-for-you brand
Based in Denver, Colorado, Birch Benders was founded in 2011 by Matt LaCasse and Lizzi Ackerman, who set out to fill a gap in the centre store by creating an easy-to-make, restaurant-quality pancake mix that was delicious and nutritious.
Known for high-quality ingredients and bringing food freedom to guilt-inducing categories, Birch Benders has since expanded its portfolio beyond pancake and waffle mix to toaster waffles, as well as pancake and baking cups. The company said it is one of the largest independent brands in its categories.
Birch Benders said its products are designed to meet a wide range of consumer demand, from organic and plant-based to non-GMO, protein, paleo, and keto alternatives.
Private equity with a consumer focus
Advent International, a consumer-focused private equity firm, has significant investment experience in the retail, consumer and leisure space. Over the past 30 years, the firm has invested $13 billion in 80 companies in the sector across 22 countries worldwide.
In addition to Sovos Brands, recent North American investments include Thrasio, Olaplex, Aimbridge Hospitality, First Watch Restaurants and lululemon athletica.
Birch Benders has chosen Piper Sandler as its financial advisor and Haynes and Boone for the legal support. Weil, Gotshal & Manges is acting as legal advisor to Sovos Brands.
