Cannae in partnership with KDSA Investment Partners has entered into an agreement to acquire a majority stake in flavouring products firm Watkins.
Financial details of the deal were not disclosed.
Minnesota-based Watkins produces flavouring products, including spices, seasonings, and extracts.
The products are sourced from natural ingredients and manufactured without using artificial flavours and colours, genetically modified organisms (GMOs), corn syrup or gluten.
The latest investment will combine Cannae and KDSA’s expertise to drive long-term growth and innovation for Watkin’s portfolio of flavour products.
According to Cannae, the private investment will support Watkins’ profitability and drive long-term value creation.
In addition, Mark Jacobs, the existing majority owner, and chairman of the flavouring products firm, will roll a significant equity stake into the deal.
Watkins CEO JR Rigley said: “This new chapter will allow us to continue to build on our rich legacy while exploring new avenues for growth and innovation.
“Together with Cannae and KDSA, we will ensure that Watkins remains a leader in the flavouring industry.
“Guaranteeing that Watkins continues to operate efficiently and effectively while maintaining a steadfast commitment to quality for consumers is our utmost priority.”
Cannae, which is a US-based financial services company, said that Watkins has enough foundation and runway for expansion within retail, including new and existing customers, and other new channels and countries.
Cannae chairman and CEO William Foley said: “This acquisition reflects the opportunity for Cannae to make a private investment into one of the fastest growing segments within the US food industry.
“The spices and seasonings category benefits from long-term secular consumer tailwinds, and Watkins is well positioned as a high-quality, premium brand.
“We look forward to partnering with Mr. Jacobs, KDSA, Mr. Rigley and the entire Watkins management team and believe that our combined resources and experience will enable Watkins to achieve new heights going forward.”
The acquisition is anticipated to close this month, subject to customary closing conditions.
Intrepid Investment Bankers served as the financial adviser to Watkins. Fifth Third Securities acted as KDSA’s financial advisor.
Cooley acted as legal adviser to Cannae, Greenberg Traurig for KDSA and Sklar Kirsh for Watkins.
