A company backed by London-based Permira has signed definitive agreements to acquire an equity stake in US-based Medora Snacks and Ideal Snacks Holding Corporation, Permira said in a statement.
The acquisition will be made through a portfolio company held by Permira's Fund V, a source familiar with the deal told Private Equity International.
The transaction will combine Medora and Ideal to form a single holding company called BFY Holdings I, which will manufacture healthy snack products. This is the 13th announced investment from the fifth fund, which closed on €5.3 billion ($5.98 billion; £3.85 billion) in 2014, exceeding its €5 billion target.
Medora and Ideal founder Zeke Alenick and other management team members will stay with BFY, holding a minority stake in the company, the statement said. Both companies will keep their current facilities in New York state.
The transaction is subject to regulatory approvals and closing conditions and is expected to close in the third quarter this year.
Permira, founded in 1985, manages €26.34 billion in assets with a total committed capital of about €25 billion, according to PEI's Research & Analytics division. Since 1997, Permira has invested over €7 billion in more than 25 consumer companies that include Hugo Boss, Galaxy Entertainment and Valentino.
Akin Bay Company was the financial advisor to Permira, and Fried, Frank, Harris, Shriver & Jacobson acted as legal advisor. Medora and Ideal received financial advising from Houlihan Lokey and legal advising from Pillsbury Winthrop Shaw Pittman LLP.