Burlington Capital Partners sells Sokol custom food ingredients to Solina, marking a major shift in the food ingredient industry

Burlington Capital Partners, a private equity firm known for investing in family-owned and founder-led businesses, has announced the sale of its portfolio company, Sokol Custom Food Ingredients, to Solina. The deal represents a strategic move in the evolving food ingredient industry, with Solina aiming to expand its global footprint and product offerings through the acquisition.

Solina, a leading global partner for the food industry, foodservice providers, quick-service restaurants (QSRs), and nutrition sectors, is headquartered in France and operates with over 4,000 employees worldwide. The acquisition of Sokol aligns with Solina’s growth strategy, enhancing its presence in North America and strengthening its position in the highly competitive food ingredient industry.

A Legacy of Innovation: Sokol’s Journey in the Food Ingredient Industry

Founded in 1895 and headquartered in Countryside, Illinois, Sokol Custom Food Ingredients has established itself as a reputable formulator and manufacturer of wet-fill, liquid food ingredient products. The company caters to a diverse clientele, including food manufacturers, consumer packaged goods (CPG) companies, and foodservice businesses. Its products are utilised in both retail and away-from-home consumption, contributing to the dynamic growth of the global food supply chain.

Sokol’s rich history is rooted in continuous innovation and a commitment to quality. Under the leadership of Chief Executive Officer Shawn Sullivan, Chief Financial Officer Lauren Davis, Vice President of Sales and Marketing John Pimpo, and Chief Operating Officer Michael Novak, the company has expanded its market reach while maintaining a strong customer-first culture.

Since its acquisition by Burlington Capital Partners in 2022, Sokol has experienced significant growth, driven by a focused go-to-market strategy and strategic business growth initiatives. This period saw the company undergo strategic divestitures and operational enhancements designed to position it for long-term success in the competitive food ingredient industry.

Strategic Business Growth Through Private Equity Partnerships

The acquisition of Sokol by Burlington Capital Partners was part of the firm’s broader strategy to invest in lower middle-market businesses with strong growth potential. Burlington Capital Partners collaborated closely with Sokol’s management team to implement strategic changes that strengthened the company’s operational framework.

Shawn Sullivan highlighted the transformative impact of Burlington Capital Partners’ involvement, noting that the firm’s support enabled Sokol to scale its operations effectively. According to Sullivan, the partnership facilitated key initiatives, including expanding Sokol’s market presence, refining its product offerings, and enhancing customer relationships. These efforts were pivotal in preparing the company for its next phase under Solina’s ownership.

Tim Novak, a Partner at Burlington Capital Partners, emphasised the firm’s commitment to being active stewards of family-owned businesses. He pointed out that the partnership with Sokol exemplified Burlington Capital Partners’ ability to drive value through operational improvements and strategic growth initiatives. Michael Baldwin, also a Partner at the firm, echoed this sentiment, expressing gratitude to Sokol’s management team and employees for their contributions to the company’s success.

Solina’s Acquisition Strategy: Expanding Global Reach in the Food Ingredient Industry

For Solina, the acquisition of Sokol represents a strategic move to strengthen its global supply chain and expand its presence in the North American market. The company’s growth strategy focuses on acquiring businesses that complement its existing product portfolio and enhance its capabilities in key sectors, including foodservice, nutrition, and QSR.

Solina’s acquisition of Sokol aligns with its vision of becoming a leading global player in the food ingredient industry. By integrating Sokol’s expertise in wet-fill, liquid food ingredients, Solina aims to diversify its product offerings and better serve its international customer base. The acquisition also provides Solina with access to Sokol’s established relationships with major food manufacturers and CPG companies, positioning the company for continued growth in a competitive market.

Despite the change in ownership, Sokol’s management team will continue to lead the company, ensuring continuity in operations and customer relationships. This approach reflects Solina’s commitment to preserving the core values and culture that have contributed to Sokol’s success over the years.

Expert Insights: What This Means for the Food Ingredient Industry

Industry experts suggest that the acquisition of Sokol by Solina could signal a broader trend of consolidation within the food ingredient industry. As companies seek to strengthen their supply chains and expand their market reach, mergers and acquisitions are becoming increasingly common.

The integration of Sokol into Solina’s global operations is expected to create new opportunities for innovation and growth. By leveraging Sokol’s technical expertise and Solina’s global resources, the combined entity will be well-positioned to address emerging trends in the food industry, including the growing demand for clean-label products, sustainable sourcing, and customised food solutions.

Analysts believe that this acquisition could also drive increased competition in the food ingredient industry, prompting other companies to pursue similar growth strategies through strategic partnerships and acquisitions. This trend is likely to reshape the competitive landscape, creating new challenges and opportunities for businesses across the food supply chain.

Legal and Financial Advisors in the Transaction

The successful completion of the transaction was supported by legal and financial advisors. Fredrikson & Byron PA and Koley Jessen PC provided legal counsel to Sokol, while Cascadia Capital served as the company’s financial advisor. Their expertise played a crucial role in facilitating the deal and ensuring a smooth transition for all parties involved.

The Future of Sokol Under Solina’s Ownership

As Sokol embarks on this new chapter under Solina’s ownership, the company is well-positioned to capitalise on new growth opportunities. The continued leadership of its experienced management team, combined with Solina’s global resources, will enable Sokol to expand its market presence and deliver innovative solutions to its customers.

The acquisition underscores the importance of strategic partnerships in driving strategic business growth and highlights the evolving dynamics of the food ingredient industry. As companies like Solina and Sokol continue to innovate and expand, the industry is poised for continued transformation in the years ahead.