San Francisco consumer goods investor Swander Pace has sold biscotti and bagel chip maker Nonni’s Food to Wind Point Partners.
Although terms of the deal were not disclosed, news reports said the Chicago- and Southfield, Michigan-based Wind Point would pay between $80 million and $100 million (€67 million and €83 million) for the business, with nearly $68 million in debt financing set up for the transaction.
If the price offering is accurate, Swander Pace – which closed a third $325 million fund last November – will realize a more than 2.5 times return on its initial investment in Nonni’s in January 1999, when the firm bought the company from Silverado Foods for $28 million.
Nonni’s major offerings included its biscotti and New York Style bagel chips. As part of this transaction, the Mrs. Fields cookie business and Cape Cod potato chips, formerly tied with Nonni’s, will be spun out to form a new platform called Shadewell Grove Foods that Swander Pace will continue to hold onto.
Wind Point is hiring food industry veteran Tim Harris as Nonni's chief executive officer. Harris formerly served as president and chief operating officer of ConAgra's refrigerated prepared foods group, which includes brands Butterball, Armour, Swift and Healthy Choice.
Wind Point’s most recent transaction took place in January, when the firm sold Pacific Cycle to Dorel Industries for $310 million. The firm closed a fifth fund last May on $476 million.