[ad_1]
Butterfly Equity invests in Chosen Foods, based in San Diego.
Beverly Hills private equity firm Butterfly Equity has agreed to acquire a majority stake in San Diego-based Chosen Foods, a maker of avocado oil and staple foods.
The terms of the transaction were not disclosed.
Chosen Foods makes avocado-based staples, including cooking sprays, mayonnaises, dressings, simmering sauces, guacamole, and salsa.
Butterfly, which manages approximately $ 3 billion in assets, has raised more than $ 521 million in its first fund and has completed eight food and agriculture deals since its inception in 2016.
In May, Butterfly announced that it had acquired a majority stake in Pete and Gerry’s Organics, based in New Hampshire, one of the largest producers of organic free-range and pasture eggs in the country.
Adam Waglay, Butterfly’s co-founder and co-head, said other destinations in the premium egg industry – primarily in the geographic belt that stretches from the Midwest to New England and the Southwest – are on the company’s radar.
In August, Butterfly invested in MaryRuth Organics, a health and wellness brand active in the premium vitamin, mineral and nutritional supplement industries.
There is more purchasing power.
Butterfly is working to raise an additional $ 750 million for a third fund that is likely to reach $ 1 billion through oversubscriptions, according to the Securities and Exchange Commission.
In addition to eggs and avocado staples, Waglay is also building similar vertical businesses in carrots, sea-grown striped bass, and lemonade.
Dustin Beck, co-founder and co-CEO of Waglay and Butterfly, calls the strategy its “seed-to-fork” approach to investing in food in the agricultural, aquaculture, food and beverage products, food distribution and food service sectors.
The longtime friends met briefly at Goldman Sachs & Co. in 2006 before Waglay worked for the New York investment bank KKR & Co. Inc. on consumer-oriented mergers and acquisitions.
Beck moved to Austin, Texas-based investment firm Vista Equity Partners before getting a managerial job at Riot Games Inc., based in Sawtelle, where he started the video game publisher’s esports business.
In 2019, Butterfly acquired Bolthouse Farms, a vertically integrated food and beverage company focused on carrots and other healthy offerings, from Campbell Soup Co. for $ 510 million.
For reprint and license inquiries for this item, CLICK HERE.
[ad_2]
