(MT Newswires) -- Family-owned Mars has bought Kevin's Natural Foods where it will operate as a standalone company within Mars' Foods & Nutrition division, the company said Wednesday.
No value was given by the companies on the transaction for the private equity-funded ready meals supplier. The deal valued Kevin's Natural Foods at almost $800 million, people familiar with the matter told Reuters. Private equity companies TowerBrook Capital Partners and NewRoad Capital Partners took a minority equity stake in Kevin's Natural Foods in 2021 for an undisclosed investment. The acquisition by Mars includes an exit of both investors, Mars said. The transaction is expected to close in the third quarter and is subject to customary regulatory approvals.
Kevin's Natural Foods was set up in 2019 with the aim of manufacturing refrigerated sous vide meat entrees and vegetable sides without the use of refined sugar or artificial ingredients. Co-founder Kevin McCray said he cured a severe auto-immune disorder by clean eating.
Mars revenues reached $45 billion last year and it aims to double sales by 2033, the company told the Financial Times in March. Kevin's Natural Foods posted double-digit growth since being founded and is available across more than 17,000 retail sites, Mars said. "The Kevin's Natural Foods team has delivered impressive growth since it was founded four years ago, and we look forward to drawing on our experience of nurturing and scaling founder-led brands to help bring their products to even more people," Mars Global President, Mars Food & Nutrition Shaid Shah said in a statement.
"They (the companies) have entered into an agreement to acquire 100% of Kevin's," a Kevin's Natural Foods spokesperson said. "Upon completion, Kevin's will be wholly owned by Mars and become a standalone Mars Food & Nutrition business." The parties had agreed not to disclose the financial details of the transaction, the spokesperson said.
A spokesperson for Mars declined to comment on the value of the deal or how it was financed.
Spokespersons for NewRoad Capital Partners, and TowerBrook Capital Partners did not immediately respond to queries from MT Newswires.
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