Warburg Pincus has announced an agreement to acquire FlavorSum, a provider of natural flavor solutions for food and beverage companies. The deal will see Warburg Pincus purchase the company from The Riverside Company. Financial terms have not been disclosed.
FlavorSum develops custom natural liquid flavors, extracts, and flavor systems used in various food and beverage products. The company primarily serves brands that are experiencing rapid growth and change in the market. Its main strengths include research and development as well as support for product applications.
Brian Briggs, CEO of FlavorSum, commented on the company's progress during its time with Riverside: “We are proud of the team and the pure-play flavor platform we built during our partnership with Riverside. Over Riverside’s investment period, FlavorSum acquired and fully integrated four complementary add-on acquisitions, completed a 35k sq. ft. facility expansion, and invested strategically in R&D, applications, and sales and marketing. Our solutions model drives industry-leading organic growth, and we have become the ‘Acquirer of Choice’ through our acquisition and integration strategies and success. We look forward to building upon this foundation and driving future growth with our new partners at Warburg Pincus.”
Zach Lazar, Managing Director at Warburg Pincus, highlighted how FlavorSum is designed to meet industry needs: “FlavorSum has been purpose-built for the unique needs of fast-growing, innovative brands, offering an unmatched combination of service (across R&D support, short lead times and best-in-class reliability) with the industry’s deepest flavor and application expertise,” he said. “FlavorSum is particularly well-positioned to meet the growing demand for natural solutions across food and beverage applications. We are tremendously excited to partner with Brian and the FlavorSum team to continue the Company’s standout growth, including actively pursuing add-on acquisitions.”
Alan Peyrat of Riverside Micro-Cap Fund added: “We enjoyed the opportunity to partner with the FlavorSum team, and we wish them much success in their next chapter. FlavorSum is well-positioned for its next phase of growth as we pass the baton to Warburg Pincus.”
The transaction is expected to close later in the third quarter.
Advisors on this deal include Houlihan Lokey and Cascadia Capital for FlavorSum; Jones Day served as legal counsel for FlavorSum; BMO Capital Markets advised Warburg Pincus financially while Cleary Gottlieb Steen & Hamilton LLP provided legal advice.
Warburg Pincus manages more than $87 billion in assets across over 220 active portfolio companies worldwide (https://www.warburgpincus.com/). The firm was founded in 1966 as a private partnership focused on global growth investing.
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