Brynwood Companions acquires frozen breakfast meals maker De Wafelbakkers

Dive Temporary:

  • Brynwood Companions VIII L.P. has acquired frozen pancake, waffle, and French toast maker De Wafelbakkers from The Oklahoma Publishing Firm, a subsidiary of the Anschutz Corp., in accordance with a press launch. Phrases of the deal weren’t disclosed.
  • Based mostly in North Little Rock, Arkansas, De Wafelbakkers has a 100,000-square-foot manufacturing facility there and a 98,000-square-foot facility in McDonough, Georgia. It has roughly 650 staff.
  • Brynwood Companions is a private-equity agency with a big portfolio of meals and beverage manufacturers, together with breakfast names. De Wafelbakkers originated within the Netherlands and expanded to North America 35 years in the past. A lot of its frozen breakfast gadgets might show common for many who are having fun with the meal at house in the course of the pandemic.

Dive Perception:

COVID-19 has led to important and everlasting adjustments in client buying habits, and Brynwood’s latest acquisition faucets into two of them: the expansion in breakfast and frozen meals.

Since they don’t seem to be in a rush to get youngsters to highschool or arrive on the workplace on time, individuals are additionally spending extra time consuming breakfast. The newfound appreciation for a leisurely morning meal has made pancakes, waffles, breakfast sausage, bacon, and chilly cereal extra regular staples in comparison with the faster, grab-and-go gadgets from pre-pandemic days. 

Frozen meals are additionally seeing a serious uptick in recognition in the course of the pandemic. Customers are both stocking as much as keep away from extra journeys to the grocery store or wanting a number of simple choices within the freezer to take a break from cooking. 

The private-equity agency already has a presence within the breakfast phase by way of Hungry Jack and Arrowhead Mills, which it owns by way of its portfolio firm Hometown Meals Firm, in addition to Sunny Delight. It is also no stranger to the frozen meals class. The truth that many De Wafelbakkers merchandise are able to eat in simply 60 seconds might enchantment to shoppers who need to spend extra time on the breakfast desk with out having to spend time prepping and making waffles or pancakes.

The agency has been an energetic investor in meals and beverage firms lately, scooping up plenty of discarded manufacturers from J.M. Smucker for $375 million by way of its Hometown Meals portfolio in September 2018. The acquisition introduced Pillsbury’s shelf steady and baking merchandise, Funfetti, White Lily, Jim Dandy and Martha White underneath its umbrella. 

Brynwood additionally acquired Buitoni Pasta’s North American division in June 2020. Whereas falling exterior the breakfast phase, client packaged items throughout a wide range of segments have caught a rising tide due to COVID-19 client tendencies like cooking extra at house. With plenty of pandemic tendencies displaying sticking energy within the post-pandemic world, Brynwood might see a pleasant enhance due to its numerous meals and beverage holdings.

The agency takes the helm of De Wafelbakkers throughout a time when consuming habits and buying tendencies are in flux. The model faces stiff competitors from up-and-coming breakfast manufacturers like Kodiak Truffles in addition to conventional names like Kellogg’s Eggo. 

Different traders are seeing the burgeoning alternative within the breakfast phase. Final month, non-public fairness agency Lindsay Goldberg acquired Aryzta North America, a business-to-business frozen baked items maker. It companies the retail, foodservice, and quick-service restaurant phase underneath manufacturers comparable to La Brea Bakery and Otis Spunkmeyer.

 

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