Contract manufacturer of nutritional and meal replacement bars for many of the largest food companies and brands in the U.S.
Largest independent bakery in the U.S. and a full-service contract manufacturer of high-quality snack food products and packaging.
SFFG’s predecessor company, Standard Candy Company was founded in 1901 as a regional confectioner and most famous for its iconic Goo Goo Clusters. In 1999, the Company expanded into contract manufacturing, producing meal replacement and sports nutrition bars for some of the leading consumer food product companies in the U.S.
Periodically, strategic and financial buyers have expressed interest in purchasing SFFG. In mid-2017, one of their main competitors, Hearthside Food Solutions (“Hearthside”) submitted an unsolicited offer. SFFG’s expertise in small run bar production and R&D were extremely attractive and complementary to Hearthside’s medium and large run production capabilities.
SFFG engaged BCA to evaluate and negotiate the offer to meet shareholder valuation expectations.
BCA positioned the Company as a scarce resource that would dramatically change the competitive landscape for the acquirer.
BCA presented a financial analysis that quantified synergies and a significant number of EBITDA adjustments. Additionally, BCA helped the Company receive pro forma consideration for a large, recently implemented contract.
As a result, the purchase price was ~24% higher than the initial offer.
BCA managed an efficient due diligence process bringing the transaction to a timely signing and closing at the same valuation as the restated LOI.
The transaction provided SFFG’s shareholders with 100% liquidity, while allowing management to retain ownership of its subsidiary business, Goo Goo Clusters.
“BCA played a critical role in positioning the forward-looking financial outlook associated with several recently signed large contracts. They spent countless hours preparing the analysis supporting these financial results, negotiating key business terms and working through several complicated transaction structural issues.”
- James W. Spradley, CEO
Standard Functional Foods Group