GREENWICH, Conn. and SALINE, Mich. — Private equity firm North Castle Partners
announced today that it has recapitalized premium flatbread maker Flatout, Inc.,
in partnership with co-founders Stacey and Mike Marsh. Glencoe Capital’s
Michigan Opportunities Fund participated on the recapitalization, the terms of
which were not disclosed.
Founded over 10 years ago by entrepreneurs Stacey and Mike Marsh in Saline, MI,
Flatout manufactures and markets healthy, premium flatbreads, wraps, and snack
crisps sold under its own Flatout brand to the grocery, mass, club store and
food-service channels. The superior taste and nutrition profile of Flatout,
along with the success of its marketing partnerships, has resulted in a strong
and loyal following among diet and health-oriented consumers. The company has
also garnered numerous awards from health magazine editors and bloggers.
“Providing consumers with healthy nutrition options is paramount to North
Castle’s mission to build industry leading companies in the Healthy Living &
Aging market,” said Chip Baird, North Castle’s Managing Partner. “We are proud
to welcome Stacey and Mike Marsh and the entire Flatout team into the North
Castle family. We look forward to sharing our knowledge, network and experience
in this space with such exceptional entrepreneurs.”
“We are excited to be partnering with North Castle given their successful track
record of growing strong, niche brands like ours into nationally recognized
brands like Naked Juice,” said Stacey Marsh, CEO. “We were impressed by their
knowledge of the industry, their values and commitment to partnership with us,
and the expertise of their team in the areas of strategy, marketing, operations
and IT,” added Mike Marsh, SVP of Operations.
North Castle Managing Director Lou Marinaccio added, “By leveraging our prior
experience in the food and beverage industry from our successes with EAS and
Naked Juice and current investment in Nutrition Solutions, a platform including
Atkins and Bora Bora, we will expand Flatout’s consumer base, product portfolio
and distribution while building a national, household brand.”
North Castle, a private equity firm focused on consumer businesses that promote
health and wellness, is well known in the nutrition industry through its current
investments in weight management leader Atkins Nutritionals and Bora Bora
Organic Foods, a brand of natural functional foods based on authentic Polynesian
superfruits, as well as prior successful investments in EAS, Naked Juice, and
Enzymatic Therapy.
Glencoe Capital is an experienced investor in branded food companies, including
in the specialty breads sector. Glencoe currently owns Toronto-based Ace Bakery,
which develops and markets a range of premium artisan breads under its own
brand; previous portfolio companies include Specialty Foods Group, a leading
producer of premium meat products. Glencoe Capital’s investment in Flatout is
the fourth by its Michigan Opportunities Fund.
Lincoln International advised Flatout, Inc. on the transaction. Morrison Cohen
provided legal counsel to North Castle.
About North Castle Partners
North Castle Partners is a leading private equity firm focused on investments in
consumer-driven product and service businesses that benefit from “Healthy Living
and Aging” trends. North Castle is a hands-on, value-added investor in
high-growth, middle market companies in the (i) aesthetics & personal care, (ii)
consumer health, (iii) fitness & recreation, (iv) home & leisure and (v)
nutrition industries. North Castle’s current portfolio includes such well-known
brands as Atkins, Bora-Bora, glominerals, Mineral Fusion, Red Door Spas,
Performance Bicycles, Cascade Helmets, World Health and Octane Fitness. Prior
portfolio company holdings include Equinox Fitness, EAS, Enzymatic Therapy, CRC
Health Group, Doctor’s Dermatologic Formula, Naked Juice Company and Avalon
Natural Products. North Castle and its operating advisors partner with
management to bring a wide range of strategic and operational capabilities, as
well as an extensive knowledge base and network to build world-class companies.
North Castle is headquartered in Greenwich, CT. For more information, visit
www.northcastlepartners.com.
About Flatout
Flatout is an established healthy, premium brand of distinctive flatbreads and
other related flatbread products sold under the Flatout Brand through retail
grocery, mass market, club store and other channels. Flatout enjoys strong brand
recognition with weight-conscious and health-minded consumers targeting
enthusiast groups such as Best Life Diet and Weight Watchers, particularly
because of its delicious taste and lower calorie, high protein, and high fiber
nutritional profile. Flatout is the official flatbread of the Best Life Diet, a
program created by Bob Greene, Oprah’s personal trainer. Flatout’s innovative,
branded and patented products provide a healthy alternative to traditional
breads and are applicable to a wide variety of unique and convenient culinary
uses such as sandwich wraps, hamburger rolls, pinwheels, flatbread pizza and
quesadillas. Flatout has a loyal retail presence with a diverse national
customer base. Flatout produces all of its products in a highly efficient
manufacturing facility in Saline, Michigan. In 2009, Flatout introduced two new
product lines, FOLDit, a creative foldable artisan flatbread, and EdgeOn
Crisps, a healthy baked snack chip based on Flatout’s core flatbread product.
About Glencoe Capital and the Michigan Opportunities Fund
Founded in 1993, Glencoe Capital is a private equity firm focused on
lead-sponsored acquisitions and growth equity investments in lower middle-market
companies. A participant in the InvestMichigan! initiative established by the
state of Michigan in 2008, Glencoe’s Michigan Opportunities Fund represents a
groundbreaking partnership between public and private sectors, leveraging equity
capital to make lead-sponsored acquisitions and growth equity investments in
companies in Michigan or with the prospect of expanding operations into the
state. The firm has offices in Chicago and in Birmingham, Mich. More information
is at www.glencap.com.
Source:
North Castle Partners