WALNUT CREEK, Calif. -- Insignia Capital Group has announced the simultaneous acquisition and merger of two family-owned food companies: Snak Club and New Century Snacks.
The companies manufacture and distribute nuts, trail mixes and other salty snacks. El Segundo, Calif.-based Snak Club sells a large assortment of branded products in airports, travel plazas and convenience stores. New Century Snacks, based in Commerce, Calif., sells its products primarily on a private-label basis in the grocery, mass merchandiser and foodservice channels.
"We have been actively targeting opportunities in the rapidly growing healthy-snack sector and are excited to partner with two companies that are extremely well-positioned in this attractive industry," said David Lowe, CEO of Walnut Creek, Calif.-based private-equity firm Insignia. "Snak Club and New Century Snacks have experienced tremendous growth over the past decade. Our investment strategy is to integrate these businesses, invest in operations, expand retail distribution and accelerate growth. These opportunities fit squarely within our investment focus."
Some of the founders of the companies participated in the transaction with Insignia.
"We are excited to be taking this next step forward in partnership with Insignia," said Hadi Morshed, a founder of both Snak Club and New Century Snacks. "We selected Insignia to be our partner based on their knowledge, experience and great success in the food sector. We expect their strategic and operational expertise to be immensely valuable as we seek to expand the businesses and provide customers with the highest-quality snack products."
The companies did not disclose the terms of the transaction.
Insignia Capital Group is a private-equity firm focused on lower-middle-market companies. It partners with company founders and management teams to help drive growth. The firm's principals have experience building businesses across a range of industries, including consumer, business services and health care. In the snack category, its portfolio also includes Truco Enterprises, which makes tortilla chips, salsa and queso under the On the Border brand.