FruitSmart
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Overview
- FruitSmart is a premier fruit-based ingredient producer in the agriculturally vibrant Yakima Valley region located in the Pacific Northwest. The Company offers a wide variety of the highest quality fruit ingredients to industry leading consumer food, beverage and nutraceutical customers
- Founded in 1982, FruitSmart supplies a broad set of juices, concentrates, blends, purees, fibers, seed and seed powders, and other value-added products to food, beverage and flavor companies throughout the United States and internationally through value-added processing of various fruit and vegetable products
Situation
- FruitSmart had an impressive historical track record, expanding their national reach, size and product portfolio to generate over 25% CAGR from 2007-2019. The Company was positioned to capitalize on positive market tailwinds in the better-for-you and value-added ingredient space while also developing a reputation for high-quality quality products with national ‘blue-chip’ customers
- Cascadia Capital was hired as the exclusive advisor to run a process and find an acquirer for FruitSmart, with the goal of allowing the owners to exit the business and step back from their roles
Our Specialized Approach
- Cascadia developed and structured a process consisting of experienced strategic and financial buyers in the food industry, with significant experience and interest in the ingredient space.
- Cascadia launched the process in Spring of 2019, ultimately finding a party in Universal Corporation with specific interest in opportunities in adjacent markets to its principal focus of tobacco
- With a strong margin profile, a diverse product portfolio and a consistent track record, Cascadia was able to adroitly position the premium components of the Company and illustrate the platform potential within the value-added ingredient space
- Ultimately the transaction was closed at a double-digit EBITDA multiple valuation, including earnout potential for the Company