Brynwood Partners
Encyclopedia
Brynwood Partners is a private equity
investment firm focused on leveraged buyout
and other control investments.
Since its founding in 1984, the firm—headquartered in Greenwich, Connecticut
—has raised five investment funds
, most recently raising a $250 million fund in 2005. Through these funds, the company owns firms and brands including DeMet's Candy Co. (Stixx, Pretzel Flipz
), Balance Bar
and Richelieu Foods
(Turtles, etc.).
in 1999.
Other managing partners include Hendrik J. Hartong III, Ian B MacTaggart, Dario U. Margve, Kevin C. Hartnett, Joan Y. Mccabe and Nicholas DiCarlo (CFO).
, a leading supplier of private-label food products and frozen pizzas. The company produces over 50 million frozen pizzas and more than 20 million finished crusts annually, reporting more than $200 million in yearly sales, and producing private label
products for companies including Aldi
, Save-A-Lot
, Shaw's Supermarkets
, Hannaford Brothers Co., BJ's Wholesale Club
and Sam's Club
.
In 2003, Brynwood bought Pretzel Flipz
, a line of yogurt-covered pretzels made in Mohnton, Pa., from Nestle.
In 2004, Brynwood acquired New York-based freight forwarder IJS Global Inc..
In 2004, Brynwood Partners sold Lincoln Snacks Company
, which made Fiddle Faddle
, Screaming Yellow Zonkers
and Poppycock
.
Subsequently that year Brynwood consolidated its portfolio of confectionary acquisitions, which included Stixx, FLIPZ
chocolate covered pretzels, Treasures and Turtles, resurrecting the dormant DeMet's Candy Company name. DeMet's began started in 1898 as a candy store business and soda fountain shop by George DeMet of Chicago — subsequently creating Turtles candies. After a series of mergers and acquisitions DeMet’s was purchased by Nestlé in 1988. In 2007, Signature Snacks, then owned by Brynwood, acquired the DeMet’s brand from Nestlé. Former Nestlé USA executive Hendrik Hartong III is chairman of the company.
from Kraft Foods
. On August 4, 2008, workers of the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union
went on strike citing proposed pay and benefit cuts and later picketed the company's attempt to bring in replacement workers.
After more than 11 months on strike, the company was required by a court ruling to reinstate the workers. However, shortly thereafter, the company announced in July 2009 that it would close the Kingsbridge, Bronx
facility. In September 2009, Brynwood announced the sale of Stella D'Oro to Lance
, a large manufacturer of snack foods, which intended to relocate Stella D'Oro's production to a non-union facility in Ashland, Ohio
.
Brynwood received negative attention for its role in the work stoppage and sale of Stella d'Oro, including a reference in an op-ed piece by the AFL-CIO
's Richard Trumka, published in the Wall Street Journal in April 2010.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and other control investments.
Since its founding in 1984, the firm—headquartered in Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
—has raised five investment funds
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
, most recently raising a $250 million fund in 2005. Through these funds, the company owns firms and brands including DeMet's Candy Co. (Stixx, Pretzel Flipz
Pretzel flipz
Flipz is a type of confectionery first owned by Nestlé and now owned by Brynwood Partners' DeMet's Candy Company consisting of salted pretzels covered in chocolate and other coatings....
), Balance Bar
Balance bar
Balance Bar, sometimes styled as balance bar, is the brand name of a nutritional energy bar based on the 40-30-30 dietary principle, that is, a diet containing 40% carbohydrate, 30% protein and 30% dietary fat. The 40-30-30 nutritional philosophy was popularized by Dr. Barry Sears, a biochemist,...
and Richelieu Foods
Richelieu Foods
Richelieu Foods is a private label food manufacturing company founded in 1862, headquartered in Randolph, Massachusetts, and owned by investment group Brynwood Partners of Greenwich, Connecticut....
(Turtles, etc.).
The firm
The company's managing partners include Hendrik (Henk) J. Hartong, Jr. (Co-founder), who had managed Air Express International in the mid-1980s until its $1.15 billion acquisition by Deutsche PostDeutsche Post
Deutsche Post AG, operating under the trade name Deutsche Post DHL, is the world's largest logistics group. With its headquarters in Bonn, the corporation has 467,088 employees in more than 220 countries and territories worldwide and generated revenue of € 51.48 billion in 2010...
in 1999.
Other managing partners include Hendrik J. Hartong III, Ian B MacTaggart, Dario U. Margve, Kevin C. Hartnett, Joan Y. Mccabe and Nicholas DiCarlo (CFO).
Investments
In 1988, Brynwood Partners purchased Richelieu FoodsRichelieu Foods
Richelieu Foods is a private label food manufacturing company founded in 1862, headquartered in Randolph, Massachusetts, and owned by investment group Brynwood Partners of Greenwich, Connecticut....
, a leading supplier of private-label food products and frozen pizzas. The company produces over 50 million frozen pizzas and more than 20 million finished crusts annually, reporting more than $200 million in yearly sales, and producing private label
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
products for companies including Aldi
ALDI
ALDI Einkauf GmbH & Co. oHG, doing business as ', short for "Albrecht Discount", is a discount supermarket chain based in Germany...
, Save-A-Lot
Save-A-Lot
Save-a-Lot is a discount supermarket chain headquartered in Earth City, Missouri, near St. Louis, United States. The subsidiary of Supervalu comprises approximately 1,250 stores in the United States with over $4 billion in annual sales....
, Shaw's Supermarkets
Shaw's Supermarkets
Shaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
, Hannaford Brothers Co., BJ's Wholesale Club
BJ's Wholesale Club
BJ's Wholesale Club, Inc. , commonly referred to simply as BJ's, is a membership-only warehouse club chain operating on the United States East Coast, as well as in the state of Ohio...
and Sam's Club
Sam's Club
Sam's Club is a chain of membership-only retail warehouse clubs owned and operated by Wal-Mart Stores, Inc., founded in 1983 and named after Wal-Mart founder Sam Walton. , the Sam's Club chain serves more than 47 million U.S. members...
.
In 2003, Brynwood bought Pretzel Flipz
Pretzel flipz
Flipz is a type of confectionery first owned by Nestlé and now owned by Brynwood Partners' DeMet's Candy Company consisting of salted pretzels covered in chocolate and other coatings....
, a line of yogurt-covered pretzels made in Mohnton, Pa., from Nestle.
In 2004, Brynwood acquired New York-based freight forwarder IJS Global Inc..
In 2004, Brynwood Partners sold Lincoln Snacks Company
Lincoln Snacks Company
The Lincoln Snacks Company was a manufacturer of caramelized popcorn and popcorn/nut mixes. Lincoln Snacks’ products are produced in Lincoln, Nebraska and sold nationally under the Poppycock, Fiddle Faddle and Screaming Yellow Zonkers brand names. Lincoln Snacks became a subsidiary of ConAgra...
, which made Fiddle Faddle
Fiddle faddle
Fiddle Faddle is candy-coated popcorn produced by ConAgra Foods. Introduced in 1967, the snack is commonly found in discount and drug stores. Fiddle Faddle consists of popped popcorn covered with either caramel or butter toffee and mixed with peanuts....
, Screaming Yellow Zonkers
Screaming Yellow Zonkers
Screaming Yellow Zonkers was a snack food, first produced by Lincoln Snacks in the USA in the 1960s. Screaming Yellow Zonkers are popcorn with a yellow sugary glaze, in a black box....
and Poppycock
Poppycock
Poppycock is a brand of candied popcorn. Though it is marketed in a variety of combinations, the original mixture consists of clusters of popcorn, almonds, and pecans covered in a candy glaze. Other specialty combinations include mixtures with emphasis on cashews, chocolate, and...
.
DeMet's Candy Company
In 2007, Brynwood bought the "Turtles" brand from Nestle USA Inc., acquiring at the same time the 280000 square feet (26,012.9 m²) Turtles production facility in Toronto, Canada — merging the acquisition with a company it owned at the time, Signature Snacks Company.Subsequently that year Brynwood consolidated its portfolio of confectionary acquisitions, which included Stixx, FLIPZ
Pretzel flipz
Flipz is a type of confectionery first owned by Nestlé and now owned by Brynwood Partners' DeMet's Candy Company consisting of salted pretzels covered in chocolate and other coatings....
chocolate covered pretzels, Treasures and Turtles, resurrecting the dormant DeMet's Candy Company name. DeMet's began started in 1898 as a candy store business and soda fountain shop by George DeMet of Chicago — subsequently creating Turtles candies. After a series of mergers and acquisitions DeMet’s was purchased by Nestlé in 1988. In 2007, Signature Snacks, then owned by Brynwood, acquired the DeMet’s brand from Nestlé. Former Nestlé USA executive Hendrik Hartong III is chairman of the company.
Stella D'Oro
In 2006, Brynwood bought Stella D'Oro Biscuit Co.Stella D'Oro
Stella D'oro is a brand of cookies and breadsticks owned by Lance Inc.. Stella D'oro means "star of gold" in Italian, and the cookies are inspired by Italian baking. Its products include breadsticks, Swiss Fudge and other cookies, biscotti, and their S-shaped breakfast treats.The Stella D'oro...
from Kraft Foods
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...
. On August 4, 2008, workers of the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union
Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union
The Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union is a labor union in the United States and Canada. It has a membership of 100,000...
went on strike citing proposed pay and benefit cuts and later picketed the company's attempt to bring in replacement workers.
After more than 11 months on strike, the company was required by a court ruling to reinstate the workers. However, shortly thereafter, the company announced in July 2009 that it would close the Kingsbridge, Bronx
Kingsbridge, Bronx
Kingsbridge is a working class residential neighborhood geographically located in the northwest Bronx in New York City. The neighborhood is part of Bronx Community Board 8. Its boundaries are Van Cortlandt Park to the north, Goulden Avenue to the east, West 225th Street to the south, and Irwin...
facility. In September 2009, Brynwood announced the sale of Stella D'Oro to Lance
Lance
A Lance is a pole weapon or spear designed to be used by a mounted warrior. The lance is longer, stout and heavier than an infantry spear, and unsuited for throwing, or for rapid thrusting. Lances did not have tips designed to intentionally break off or bend, unlike many throwing weapons of the...
, a large manufacturer of snack foods, which intended to relocate Stella D'Oro's production to a non-union facility in Ashland, Ohio
Ashland, Ohio
Ashland is a city in the U.S. state of Ohio and the county seat of Ashland County. The population was 21,249 at the 2000 census. It is the center of the Ashland Micropolitan Statistical Area...
.
Brynwood received negative attention for its role in the work stoppage and sale of Stella d'Oro, including a reference in an op-ed piece by the AFL-CIO
AFL-CIO
The American Federation of Labor and Congress of Industrial Organizations, commonly AFL–CIO, is a national trade union center, the largest federation of unions in the United States, made up of 56 national and international unions, together representing more than 11 million workers...
's Richard Trumka, published in the Wall Street Journal in April 2010.