The private label spices manufacturer has been a portfolio company of Kainos since May 2018
Kainos Capital has agreed to sell its portfolio company Olde Thompson to Olam Food Ingredients in a $950 million deal. Olam is an operating group of global good and agribusiness company Olam International.
Andrew Rosen, managing partner of Kainos, said: “Our investment in Olde Thompson was driven by our thesis in the growing importance of spices and flavourings as consumers seek bolder taste profiles. After meeting Jeff Shumway, the founder of Olde Thompson, nearly a decade ago, we ultimately partnered in 2018 to pursue our shared vision to grow Olde Thompson into the largest dedicated private label provider of spices and seasonings.
“We accomplished this by investing in our manufacturing capabilities and customer development resources, and the acquisition of Gel Spice from the Engel family in 2020 helped accelerate this strategy and was instrumental in attracting the interest of a terrific strategic acquiror in Olam.”
Headquartered in Oxnard, California, Olde Thompson is the largest dedicated manufacturer and supplier of private label dry spices and seasonings in North America. Kainos acquired the company in May 2018.
David Sugarman, chief executive of Olde Thompson, said: “The acquisition of Olde Thompson by Olam is a terrific outcome for all of our key stakeholders. For our customers, this partnership pushes Olde Thompson to the forefront of ESG as it provides access to Olam’s extraordinary international sourcing capabilities and spice expertise that will allow us to provide a new level of traceability and transparency to the marketplace. Our employees will benefit from additional resources and opportunities that will accelerate our growth even further.”
Last year, Olde Thompson acquired Gel Spice, which further established it as a leader in the spice category. The acquisition created a differentiated bi-coastal manufacturing footprint, unlocked additional channels, and expanded the company’s product offering into pouches, extracts and single-serve seasonings for meal kits and other applications.
The Kainos team has invested over $2 billion of equity in over 75 investments with a total value over $12 billion over the past 25 years. Kainos specialises in investing in family and founder owned businesses where it can be a value-added partner and instil a culture of operational excellence through its sales development, manufacturing, supply chain and administrative expertise.
Olde Thompson entrusted Sawaya Partners and Lazard with financial advice. Weil, Gotshal & Manges LLP served as legal counsel to Olde Thompson.
Completion of the transaction is expected in the second quarter this year.
Date published: 29 April 2021