BDO Capital Advisors Announces the Leveraged Buyout of Specialty Brands of America
BDO Capital Advisors, LLC (“BDO Capital”) is pleased to announce the closing of the leveraged buyout of Specialty Brands of America, Inc. (“SBA”) by American Capital Strategies Ltd. (“American Capital”) with a total investment of $68 million.
Founded in 1991 and based in Westbury, NY, SBA has built a leading branded specialty foods company through acquisitions and internal growth. SBA is primarily known for its branded line of syrups, having entered this category by acquiring the leading U.S. sugar free table syrup brand, Cary’s® Sugar Free Syrup and Cary’s® and MacDonald’sTM pure maple syrup from Borden Inc. The company subsequently acquired Spring Tree Corporation, and with it, obtained the leading pure maple syrup brand in the U.S., Spring Tree® Pure Maple Syrup and the rapidly growing Spring Tree® Low Calorie Sugar Free Syrup. SBA’s syrups can be found in the U.S. in just about every grocery store, in the leading breakfast restaurant chains, and in 18 countries. The company’s other brands include Original Trenton Crackers®, a 150-year old line of oyster and wine crackers; Dixie Fry®, a brand of chicken and fish coating mix; Canoleo®, a canola oil based margarine; and New York Flatbreads®, a crispbread distributed nationwide in retail stores and upscale restaurants. SBA has a 97% ACV and a customer base that includes all of the leading retailers and wholesalers in the U.S. Equally impressive, the company has seen consistent earnings growth of approximately 12% annually over the past several years.
American Capital’s investment was in the form of senior term debt, senior and junior subordinated debt, redeemable preferred stock and common equity. American Capital also provided a revolving credit facility. Post closing, American Capital owned 77.5% of SBA on a fully diluted basis with the transaction being structured to include significant equity investments by key management personnel. American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.5 billion. American Capital is an equity partner in management and employee buyouts, invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
About BDO Capital Advisors, LLC
BDO Capital Advisors, LLC is a leading middle market investment bank that focuses on mergers and acquisitions advisory, capital raising, and board advisory with offices located throughout the United States. The firm has deep industry knowledge, extensive cross-border transaction experience, and superior execution capabilities. BDO Capital Advisors, LLC provides sell-side and acquisition advisory, ESOP advisory, private placements, fairness opinions, and capital markets advisory. The firm has broad industry expertise and contacts having closed transactions within the Manufacturing & Distribution, Consumer, Food & Retail, Healthcare & Life Sciences, Business Services, Energy & Natural Resources, and Technology, Media & Telecom sectors. Our seasoned investment bankers have collectively advised on hundreds of transactions for a variety of clients including family-owned businesses, entrepreneur-led companies, public corporations, and leading private equity firms.
The firm has worldwide access to buyers, sellers, and offshore investors via the Corporate Finance practices of BDO International’s network of independent member firms which have been ranked collectively as a Top 5 global M&A midmarket advisor based on total deal volume announced in 2016, according to Thomson Reuters SDC. BDO International Corporate Finance firms operate in approximately 60 countries with over 2,000 professionals who are able to meet the investment banking needs of clients across the globe.