Investment Firm, Management Team Recapitalize Piedmont Candy Co.
Plexus Capital buys out "inactive shareholders"
CHARLOTTE, N.C. -- Charlotte investment firm Plexus Capital has partnered with the existing management team and ownership group in the recapitalization of Piedmont Candy Co.
According to Plexus, the firm invested $14.4 million, and the management team, which will continue to operate and grow the business, reinvested 100% of sale proceeds into the deal to buy out inactive shareholders and provide capital for growth, according to a report in the Triangle Business Journal.
A securities filing issued by Raleigh-based Piedmont Candy Holdings listing names such as RBC veteran Kel Landis was filed Wednesday, indicating the entity had raised $8.1 million in equity and warrants. The deal closed on Nov. 14.
Nestled in the town of Lexington, N.C., for more than a century, Piedmont Candy Co. has a rich heritage of fine candy making. Today, the company prides itself in producing an authentic taste of the past using premium quality ingredients and state-of-the-art manufacturing equipment.
Plexus typically partners with U.S. companies that have less than $100 million in sales and a proven history, not real estate or early-stage companies, according to the newspaper.
In this case, it's partnering with an established candy company. Piedmont Candy was founded in 1890 and manufactures peppermint candy products, including the Red Bird Brand of soft peppermint puffs.