North Castle Partners has acquired a controlling interest in Sprout Organic Foods Inc., a developer, marketer and distributor of premium organic foods, primarily serving the baby/toddler market.
For North Castle Partners, a leading private equity firm focused on consumer businesses that promote healthy, active and sustainable living, this transaction represents its fourth investment in the natural and organic nutrition sector. The terms of the investment were not disclosed.
Sprout first revolutionized the baby food category by pioneering the launch of the organic pouch segment. Using specialized pouches and slow-cook technology, Sprout’s chef-inspired recipes are free of water-reconstituted concentrates, fillers, preservatives and acidifiers. The company’s products are sold through most national and natural/specialty grocers as well as through online retailers.
“We are excited about the Sprout acquisition as our latest nutrition platform that addresses the needs of today’s consumers. The organic baby food category is an attractive market with strong underlying fundamentals. Sprout is a strong brand that resonates with retailers and consumers, with a product portfolio that has meaningful competitive differentiation,” said Alison Minter, North Castle managing director.
“North Castle has extensive experience and an expansive network within the natural and organic food space, not only from our investments in Naked Juice, Bora Bora Organic Foods and Flatout Flatbreads, but also from our experience with North Castle portfolio companies who sell through the grocery, natural, mass, e-commerce and other specialty retailers,” stated Minter.
Rick Klauser, formerly the chief marketing and medical sales officer for U.S. Infant Nutrition at Nestle (Gerber), was named the CEO of Sprout.
Earlier this year, North Castle Partners sold Flatout, a leading manufacturer and marketer of highly differentiated, premium and better-for-you flatbreads and flatbread products, to T. Marzetti Co., a wholly owned subsidiary of Lancaster Colony Corp.
