Brown Gibbons Lang & Company facilitates Crest Foods sale to Harwood Private Equity

In a significant development in the food and beverage sector, Brown Gibbons Lang & Company (BGL), an esteemed independent investment bank and financial advisory firm known for its expertise in the global middle market, has successfully orchestrated the sale of Crest Foods to Harwood Private Equity (Harwood). This transaction is noteworthy for several reasons, not least because of the strategic partnership it creates between a leading provider of dairy stabilizers, contract packaging, and branded and private label dry food manufacturing, and an investor renowned for its focus on the lower middle market. While the specific terms of the deal remain confidential, the announcement has generated considerable interest within the industry.

A pivotal aspect of this transaction is the comprehensive suite of advisory services provided by BGL, which spanned the Food & Beverage, Debt Capital Markets, and Real Estate sectors. This integrated approach underscores BGL’s ability to offer a holistic suite of services to clients on both sides of the acquisition process, including facilitating acquisition financing and real estate financing solutions.

Founded in 1946, Crest Foods has established itself as a frontrunner in the food manufacturing domain, offering a wide array of services across its three main business lines: Ingredients, Contract Packaging, and Consumer Products. The company is particularly lauded for its proprietary stabilizer formulations and recipes, which have set industry standards for dairy and plant-based beverages. The partnership with Harwood is expected to usher in a new era of growth and innovation for Crest Foods, while continuing to provide exceptional value to its esteemed clientele, which includes leading consumer brands and blue-chip customers.

Harwood Private Equity stands out for its strategic investments in the lower middle market, boasting a diverse portfolio that spans various industries, from food and beverage to life sciences and healthcare services. The acquisition of Crest Foods is aligned with Harwood’s investment philosophy, which prioritizes growth potential and industry leadership.

In conjunction with the acquisition, a notable real estate transaction was also facilitated by BGL—a sale-leaseback of the affiliated 575,000-square-foot, state-of-the-art facility in Ashton, IL. This move, executed via TPG Angelo Gordon’s Net Lease business, underscores the multifaceted expertise BGL brings to the table in supporting its clients through complex transactions.

The sale of Crest Foods to Harwood Private Equity represents a strategic pivot for both entities, promising a future of sustained growth and innovation. BGL’s role as the exclusive financial advisor highlights the firm’s unparalleled ability to navigate the intricacies of the food and beverage market, delivering bespoke financing solutions that drive success. As the industry continues to evolve, partnerships like these will be crucial in setting new benchmarks for quality and innovation.