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
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
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