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Hormel Foods to sell Diamond Crystal Brands to Peak Rock Capital

FBR Staff Writer Published 27 April 2016

US-based food company Hormel Foods has entered into an agreement to sell Diamond Crystal Brands (DCB) to a partner of private equity firm Peak Rock Capital for an undisclosed sum.

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DCB, which was founded in 1980, manufactures and distributes sauces, dressings, condiments, drink mixes, salt, pepper, sweeteners and other food and beverage products.

With a diverse customer base of foodservice distributors, national restaurant chains and convenience stores, it operates seven SQF Level 3 manufacturing facilities across the US.

Peak Rock Capital CEO Anthony DiSimone said, "DCB represents an exciting opportunity to invest in a leading middle market food and beverage company with a long-standing reputation for quality and service.

"The transaction highlights Peak Rock's ability to efficiently execute complex corporate carve-outs, where we can leverage the extensive operational experience of our principals to effectuate a seamless company transition to a standalone entity, in order to further drive growth and operational improvements."

This deal is the fourth transaction that Peak Rock has made in the food industry. The private equity firm's other investments in the industry include honey producer Natural American Foods, dairy-based shelf-stable snacks and beverage maker Berner Food & Beverage, and mushroom producer Highline Mushrooms.

Peak Rock Capital managing director Peter Leibman said: "DCB's industry leading product offerings, blue-chip customer base, outstanding team and strong reputation make this a highly compelling investment.

"We believe that DCB represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions."

The transaction, which is subject to customary closing conditions, is slated to be completed in the second quarter of 2016.


Image: Hormel Foods to sell Diamond Crystal Brands. Photo: Courtesy of Pingouperrios/Wikipedia.