Detroit Snacking Brands Kar's Nuts and Sanders Merge.
M2 EQUITYBITES-October 26, 2018-Detroit Snacking Brands Kar's Nuts and Sanders Merge
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26 October 2018 - US-based nut and trail mix snacks maker KNPC Holdco, LLC (Kar's Nuts) has closed amerger with confectionary products maker Morley Candy Makers, LLC, the company said.
The merger brings together two brands with deep roots in the Detroit area.
Kar's Nuts was founded in Detroit in 1933 by Sue Kar, who roasted peanuts in her home to sell outside nearby Navin Field, which later became Tiger Stadium.
Similarly, Sanders was founded in 1875 when Fred Sanders Schmidt opened his first Sanders candy shop in Detroit.
The combination of Kar's Nuts and Sanders creates a leading platform within the snacking industry, offering a range of premium trail mix, nuts and confectionary products across three brands.
The merger will provide Sanders with expanded national distribution opportunities and offer Kar's Nuts additional production and product innovation capabilities.
Sanders will operate as its own division within the combined company,
and the workforces of both companies will remain in place.
Kar's Nuts' acquisition of Sanders represents its first acquisition following the investment in Kar's Nuts in March 2017 by an affiliate of Palladium Equity Partners, LLC, a middle market private equity firm with approximately USD 2.7bn in assets under management.
Palladium and other Kar's Nuts equity holders made follow-on investments to support the acquisition and the future growth of the combined company.
Nick Nicolay will serve as CEO of the combined company which will be headquartered in Madison Heights, Michigan. Brian Jefferson will remain in place through the transition with plans to retire once the two companies are fully integrated.
Since it was founded by Sue Kar in 1933 who sold home-roasted peanuts outside Tiger Stadium in Detroit, the company's brands, Kar's and Second Nature, have become two of the best-selling trail mix brands in the country.
Sanders was founded in 1875 when Fred Sanders Schmidt opened his first Sanders candy shop in Detroit. Today, Sanders has grown into a nationally recognised producer of premium confections, artisanal chocolates, baked goods, dessert toppings and ice cream.
Sanders products are currently sold in leading retailers nationally. It also operates eight Sanders Chocolate and Ice Cream Shoppes in Metro Detroit, Mackinac City, and Mackinac Island.
KPMG Corporate Finance LLC served as financial advisor to Sanders on the transaction. Giarmarco, Mullins and Horton, P.C. served as Sanders' legal advisor. Jaffe Raitt Heuer and Weiss, P.C. served as legal advisor to Kar's Nuts.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 26, 2018|
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