Nutritional Snacks Manufacturers TruFood, Bar Bakers Merge
Two specialty nutritional foods manufacturers have combined as Pittsburgh-based TruFood Manufacturing announced today it has completed a merger with West Coast snacks producer Bar Bakers, LLC.
The deal comes with new investment in the combined entity from health and nutrition-focused growth equity firm Manna Tree and Abu Dhabi-based financier Mubadala Capital. TruFoods chief executive Michael Buick will serve as CEO of the company, while Bar Bakers founder and CEO Harold Rothman will join the board of directors. Gary Jacobs, president of Bar Bakers, will become COO.
Financial terms of the deal were not disclosed.
The merger helps fill gaps in both manufacturers’ capabilities, as Bar Bakers adds its snack production to TruFoods’ specialization in nutrition bars, chocolate and baked granola goods. Founded in 2013, Bar Bakers has over 1,000 employees across four manufacturing locations and operates two warehouses in California.
“The combined company’s expertise and resources will enable us to better serve our customers and to accelerate our growth opportunities,” said Buick in a press release. “I am thrilled to welcome Bar Bakers to our family. Their track record of customer partnership and operational excellence align perfectly with our values and vision.”
Speaking to Nosh this afternoon, Manna Tree managing partner Steve Young said his firm believes TruFood and Bar Bakers are poised for significant growth in the coming years as sales in the nutritional foods sector continue to rise and new brands continue to enter the market. He cited this week’s acquisition of protein products brand OWYN by The Simply Good Foods Company as another example of the continued optimism around the protein and nutritional foods category.
“It feels like there is more and more activity in this nutrition bar and nutritional baked goods space every day,” Young said. “Every day there’s a new brand that crops up with a unique twist on the consumer needs.”
TruFood marks the first investment in a manufacturing business by Manna Tree, whose portfolio has largely focused on brands like Health-Ade Kombucha, Good Culture and Verde Farms, but has also included ingredient and supplier businesses like Mycotechnology.
By investing in a manufacturer, Young said the company recognized an opportunity to support the broader trend of better-for-you foods, as opposed to just “backing any one given brand,” he said.
“We really thought that backing TruFood and Bar Bakers gave us, as investors, the opportunity to back the category and back the leading manufacturer in the category,” he added.
Looking ahead, Young said that building new and maintaining existing relationships with brands will be vital to the continued growth of the combined manufacturer, and he complimented Buick on “building his career” around forging those business relationships.
“The core building block is expanding and strengthening our core relationships,” he added. “There are obviously going to be other new ones as well, too, that we’ll target. We just think as more and more companies look at nutrition, and higher protein specifically, the company will be right there hopefully to meet those needs.”
Akin Gump Strauss Hauer & Feld LLP served as legal advisors to Mubadala Capital. Winston & Strawn LLP were legal advisors, and Houlihan Lokey acted as financial advisors to Bar Bakers.
