Warburg Pincus Acquires Natural Flavors Supplier FlavorSum

Private equity firm Warburg Pincus today announced it has agreed to acquire FlavorSum, a supplier of natural flavors and extracts, from global investment firm The Riverside Company. Financial terms were not disclosed.

Based in Kalamazoo, Mich., FlavorSum offers custom flavor formulation capabilities and primarily serves high-growth, disruptive brands across the food and beverage industry. The company has nearly 100,000 sq. ft. of manufacturing space across North America. Last year, FlavorSum completed a 35,000 sq. ft. expansion to its Kalamazoo facility to enhance its emulsion, extraction and warehousing capacity and added a 10,000 sq. ft. innovation center in New Jersey.

FlavorSum has also announced several strategic add-on acquisitions in recent years, including the addition of Meridian Flavors, a manufacturer of natural and organic flavors.

As demand for natural flavors accelerates, FlavorSum is “well-positioned” to maintain its momentum, said Zach Lazar, managing director at Warburg Pincus.

“FlavorSum has been purpose-built for the unique needs of fast-growing, innovative brands, offering an unmatched combination of service – across R&D support, short lead times and best-in-class reliability – with the industry’s deepest flavor and application expertise,” Lazar said in a press release.

New York-based Warburg Pincus has more than $87 billion in assets under management, with more than 220 companies in its active portfolio.

The transaction is expected to close in the third quarter.

Houlihan Lokey and Cascadia Capital are serving as financial advisors to FlavorSum, and Jones Day is acting as legal counsel. BMO Capital Markets is acting as financial advisor to Warburg Pincus, with Cleary Gottlieb Steen & Hamilton LLP as legal counsel.