CANADA – Clearspring Capital Partners, a Canadian private equity firm has acquired a majority stake in confectionery distributor Regal Confections for an undisclosed firm.
The acquisition was made through Clearspring Fund III, a US$260 million closed private equity fund managed by Clearspring Capital Partners.
A report from Regal said that the acquisition will reportedly strengthen the company’s portfolio of products and brands and accelerate growth.
Regal Confections specialises in the distribution of confectionery brands – including Tootsie Roll, McCormicks and Pez – to a range of channels such as club, grocery, convenience stores, and specialty independent stores.
“Regal is the proud custodian of world-renowned confectionery and gourmet brands that Canadians recognise instantly,” said Joe Neufeld, chairman emeritus of Regal Confections.
Neufeld further added that his company has been partnering with leading manufacturers and retailers and contributing to their success for nearly 60 years.
Clearspring says it will inject capital into Regal to enable the distributor to pursue its growth strategy.
“We look forward to bolstering Regal’s national leadership as an independent value-added distributor in the candy, chocolate and gourmet foods segments,” said Milap Choksey, principal at Clearspring Capital Partners.
Marie-Claude Boisvert, partner at Clearspring Capital Partners, added: “We are impressed with the track record of growth at Regal, their enduring brand partner and customer relationships and the company’s ability to build and to maintain brand presence in a highly competitive marketplace.”
Following the transaction, existing shareholders including Walter Mueller will remain with Regal.
After nearly five decades of confectionery market leadership, Regal Confections has evolved into an exclusive distributor of some of the industry’s most prestigious brands.
Strengthened by its innovative seasonal range, Regal Confections markets a wide range of licensed products such as Disney, Marvel, Lucas Films, Sanrio, NHL and DreamWorks.
In addition, the company has a gourmet gift basket division called “Sweet Expressions”. This division offers original seasonal creations for all occasions.
Regal Confections also owns Chocolat Jean-Talon, specialized in the fabrication of high quality peanut-free chocolate
Currently headquartered in Quebec, the company has over 250 employees who oversee operations in its four distribution centres, one co-packing operation and one production plant.
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