CD&R to acquire snack industry leader Shearer’s Foods from Ontario Teachers’

In a significant move in the snack industry, Clayton Dubilier & Rice (CD&R) announced the acquisition of Shearer’s Foods, a prominent player in the snack manufacturing sector in the United States and Canada. This acquisition, from Ontario Teachers’ Pension Plan Board, marks a pivotal change in ownership for Shearer’s, known for its extensive range of private label snacks and contract manufacturing services. The financial terms of the deal, however, remain undisclosed.

Shearer’s Foods, with a rich history dating back to the early 1900s, stands as an award-winning supplier in the snack industry. Operating from Massillon, Ohio, and led by Executive Chairman Bill Nictakis and CEO Mark McNeil, the company boasts an impressive manufacturing footprint, diversifying into salty snacks and cookies and crackers. This expansion has positioned Shearer’s as a leading manufacturer in its domain.

Bill Nictakis commented on the acquisition, expressing gratitude towards Ontario Teachers’ for their decade-long ownership and acknowledging CD&R’s alignment with Shearer’s growth-focused vision. Mark McNeil echoed these sentiments, highlighting the exciting prospects of growth and innovation under the new partnership.

John Compton, CD&R Operating Partner and former President of PepsiCo, conveyed his enthusiasm for partnering with Shearer’s, recognizing the company’s alignment with CD&R’s core values and sector expertise. J.L. Zrebiec, CD&R Partner, emphasized their commitment to scaling Shearer’s operations and enhancing its service offerings.

The transformation of Shearer’s under Ontario Teachers’ stewardship since 2012 has been noteworthy. Growing from five plants to 17, Shearer’s has emerged as a significant producer in the North American private label and co-manufactured salty snack market. This growth reflects strategic investments in manufacturing capabilities and diversified product offerings.

Raymond Shiu, Managing Director at Ontario Teachers’, and Harj Shoan, Senior Managing Director, lauded Shearer’s achievements under their partnership and expressed optimism about its future trajectory with CD&R.

The financial facilitators for this transaction include Deutsche Bank Securities Inc., UBS Investment Bank, BMO Capital Markets Corp, BNP Paribas, RBC Capital Markets LLC, and TD Securities for CD&R. Additionally, Blue Owl Capital Inc. and Goldman Sachs Bank USA provided financing to CD&R, with Debevoise & Plimpton LLP serving as legal advisors. Goldman Sachs & Co. LLC and Kirkland & Ellis advised Shearer’s on the financial and legal aspects, respectively.

This acquisition by CD&R not only highlights the dynamic nature of the snack industry but also underscores the strategic moves by major players like Shearer’s to adapt and thrive in a competitive market.