April 26, 2010
CPC Fund V Announces Sturm Foods Sale
Carson Private Capital Fund V, LP announced the sale of Sturm Foods by HM Capital to TreeHouse Foods (NYSE: THS), a leading private label food manufacturer, in an all cash transaction valued at $660 million equal to 7.5x trailing EBITDA.
CPC Fund V participated in the $350 million (7.0x FYE March 06 EBITDA) acquisition of Sturm Foods by HM Capital in May 2005.
The Sturm Foods investment was an opportunity to invest in a scale private label grocery manufacturer to capitalize on consumers' increasing focus on convenience, health and value, a trend identified during HM Capital's long and successful history of investing in branded food businesses. During HM Capital's five years of ownership, Sturm experienced exceptional bottom line growth with EBITDA increasing by 200%.
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