GREENWICH, Conn. -- Harvest Hill Beverage Co. has signed a definitive purchase agreement to acquire American Beverage Corp. (ABC) from Wessanen for approximately $55 million. Based in Stamford, Conn., Harvest Hill was formed by Brynwood Partners VII L.P. in June 2014 to acquire the Juicy Juice brand from Nestle USA Inc. The ABC transaction is expected to close during the first half of 2015 and is subject to regulatory approval.
Founded in 1960, ABC is a diversified beverage company that is a leading manufacturer and marketer of fruit drinks, ready-to-drink alcoholic drinks and non-alcoholic cocktail mixers. The company's brands include Little Hug Fruit Barrels, Big Hug and Guzzler in addition to Daily's (alcoholic cocktail drinks and mixers). ABC's products are nationally distributed through the grocery, drug, mass, warehouse club and liquor store channels. Additionally, Daily's products are sold through foodservice distributors to bars and restaurants. The company, which has approximately 337 employees, is headquartered in Rye Brook, N.Y., and manufactures its products out of a company-owned, state-of-the-art manufacturing facility in Verona, Pa., and a leased facility in Phoenix.
"The Little Hug brand provides Harvest Hill with an entry into the sizeable juice drink category," said Henk Hartong, chairman and CEO of Brynwood Partners and chairman of Harvest Hill. "The addition of Little Hug to our retail juice portfolio enables Harvest Hill to participate in all segments of the juice aisle, strengthening our position with our retail partners."
ABC was founded 55 years ago in Verona, Pa., as Daily Orange Juice Co. Inc. and many of its original manufacturing capabilities remain in place today.
"This acquisition makes Harvest Hill one of the largest independently owned juice companies in the U.S.," said Sal DePrima, president and CEO of Harvest Hill, "and we plan to build on the momentum that the Little Hug and Daily's business have in the marketplace."
Ian MacTaggart, president and COO of Brynwood Partners, said the deal is significant in growing Harvest Hill. "This marks Harvest Hill's first strategic add-on acquisition since we established the company only eight months ago," he said. "A significant investment for our firm, Harvest Hill's acquisition of ABC highlights Brynwood Partners' dedication and commitment to this investment platform as we continue to build upon a leading U.S. beverage franchise."
Brynwood Partners has developed a unique niche in the corporate divestiture segment. In its 31-year history, Brynwood Partners, including the ABC acquisition, will have acquired 45 brands from 16 different corporate sellers.
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