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Vestar eyes expansion after Roland recap, Manna Tree takes larger portion of Verde Farms

Good morning, PE Hubsters!

Rafael Canton here with the Wednesday Wire. It’s a consumer-centric Wednesday with a couple of deals in the sector to talk about. One of my sector beats for PE Hub is consumer and retail so it’s a perfect topic to talk about this morning.

First, we will start with a deep dive into Vestar Capital Partners’plan to make add-ons after a recapitalization of Roland Foods.

Next, we have a look into Manna Tree’s recent deal to acquire a controlling stake in Verde Farms.

Finally, we will end with a deal announcement. Black Bay Energy Capital has agreed to sell Piñon Midstream, a Houston-based gas company, to Enterprise Products for $950 million.

Seeking add-ons

Seeing an opportunity to grow the company through add-ons and a future path at an exit after 11 years of ownership, Vestar Capital Partners recapitalized Roland Foods earlier this month. To learn more about the firm’s add-on strategy for Roland, PE Hub caught up with Ken O’Keefe, Vestar managing director and chief operating officer.

Subscribers to the premium version of the Wire can read more about Vestar’s add-on strategy and exit plans.

Bullish on better-for-you

Now, we shift from foodservice to the better-for-you food category with PE Hub’s Iris Dorbian. Consumers have turned to healthier and more sustainable food diet options since the pandemic, Iris writes. Private equity has increased its focus on certain recession-resistant sectors while deal activity has slowed, leading to interest in the better-for-you category.

Recently, Manna Tree Partners acquired a controlling stake in Verde Farms, a Woburn, Massachusetts-based organic beef brand. Manna Tree initially invested in Verde Farms in 2020. The firm targets companies focused on improving human health.

Iris spoke to Steve Young, managing director at Manna Tree, to find out the firm’s goals for the investment and why Manna Tree is so bullish about the better-for-you food sector.

Upgrade to the premium version of the Wire to read Iris’ Q&A with Manna Tree.

A midstream exit

Black Bay Energy Capital has agreed to sell Piñon Midstream, a Houston-based gas company, to Enterprise Products for $950 million.

Subscribe to the premium Wire to learn more about this morning’s deal.

That’s it from me today. If you have any questions, thoughts, or want to chat, please email me at rafael.c@pei.group

Michael Schoeck will be on Wire duty tomorrow.

Cheers,

Rafael

Read the full Wire commentary on PE Hub ...

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They said it

“We have a robust pipeline of potential acquisition targets which supports our overall growth strategy and value proposition for our customers. I would be disappointed if we did not make multiple acquisitions over the coming years.”

— Ken O’Keefe, managing director and chief operating officer of Vestar Capital Partners on Vestar’s add-on strategy for Roland Foods