Meaty Deal: Monogram Reacquires Meat Snack Co-packer

Less than two years after selling Western Smokehouse to AUA Private Equity Partners, Monogram Capital has reacquired the meat snack manufacturer. Terms of the transaction were not disclosed.

As part of the deal, AUA will not retain any stake in Western Smokehouse. Monogram funded the transaction through its investment vehicles, including a continuation vehicle with longstanding partner RCP Advisors.

“[Monogram] continued our involvement with the company and close relationship with management at Western, and approached AUA to reacquire based on the growth of the company and industry,” said Monogram Capital cofounder and partner Jared Stein.

Founded in 1978, Western Smokehouse specializes in co-packing and private-label premium jerky and meat stick brands. The company currently operates five production plants across Missouri, Illinois, Iowa and Idaho, totalling 1,000,000 sq. ft. of production capacity across its network.

In April 2023, AUA acquired a majority stake in Western Smokehouse from Monogram’s 80% ownership share. As part of that deal, Western Smokehouse’s founders exited the company with Monogram retaining a 21% minority share and a board seat.

In its five years as Western’s majority owner, Monogram helped the meat snack maker’s founding family scale from one plant to three and grew the company’s EBITDA by over four and a half times.

Back into Monogram’s portfolio, Western Smokehouse is expected to open two new production facilities by the end of the year, bringing its total footprint to seven manufacturing plants.

“We’re poised to double our production capacity over the next year, and Monogram’s strategic and operational support will be critical as we scale to meet growing demand,” Western Smokehouse Partners CEO Matt Bormann said in a press release.

Dried meat snacks have become a nearly $5 billion category, growing dollar sales 8.8% in the last 52 weeks ending June 15, according to Circana tracking. Dollar sales for the meat stick segment was up 12% with unit sales rising 1.3% in that period.

Western Smokehouse is one of the largest co-manufacturers of meat sticks, partnering with some of the fastest-growing brands in the category, Archer and Chomps, as well as Conagra-owned FATTY.

During AUA’s ownership term, Western Smokehouse “significantly expanded production capacity” by opening a new facility, acquiring meat snack maker Golden Valley Natural and diversifying Western’s product offerings, according to the release.

AUA claims to have more than doubled the size of the business within its two years running Western Smokehouse and initiated the new expansion projects that will be completed this year.