August 8, 2017
Cascadia Capital, an investment bank serving middle market clients globally, today announced it acted as the exclusive financial advisor to Cold Spring Brewing Company (“Cold Spring”), a leading beverage manufacturer, in its acquisition by Brynwood Partners VII L.P.
Located in Cold Spring, Minnesota, Cold Spring is a family-owned business that produces energy drinks, craft beer, carbonated flavored water and other specialty beverages. The company primarily manufactures beverages, both non-alcoholic and alcoholic, for other proprietary brands and private labels. Cold Spring also brews beer under its own brand, Third Street Brewhouse, for distribution locally in Minnesota and Wisconsin.
Founded in 1874 in Cold Spring, Minnesota, the company is one of the oldest beverage manufacturing plants in the U.S. Today, Cold Spring is a leading independent beverage manufacturer with over $60 million in net sales and approximately 350 employees.
“Many of the high growth brands in the beverage industry rely on contract manufacturers to meet growing customer demand while ensuring product quality. Cold Spring offers best in class execution, which has solidified relationships with leading brands across the category,” said Erik Einwalter, Senior Vice President in Cascadia Capital’s Consumer & Retail group. “Interest from acquirers was robust as Cold Spring offers direct category exposure without singular brand risk.”
“We continue to differentiate ourselves in the food and beverage marketplace through the delivery of thoughtful, targeted transaction processes designed to deliver premium results,” said Bryan Jaffe, Managing Director at Cascadia Capital. “The closing of this transaction represents our sixth successful facility-based food and beverage transaction in the last 12 months.”
Brynwood Partners, based in Greenwich, CT, is an operationally-focused private equity firm that makes control investments in North American-based lower middle market companies in the consumer sector. This marks Brynwood’s sixth investment in the beverage sector and while Cold Spring will be operated as a standalone company, it will benefit greatly from the scale and national distribution and manufacturing foot print of Brynwood Partners’ portfolio, including Harvest Hill Beverage Company.
The acquisition of Cold Spring represents another successful transaction for Cascadia’s Consumer & Retail team in the Food & Beverage sector. Recent transactions include the financing of Humm Kombucha and the acquisition of Tillamook Country Smoker.
For more information about this transaction, please contact the Cascadia Capital deal team:
John C. Siegler
Senior Vice President
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