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Claridge Looks for New F&B Investments in North America

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Claridge Inc., the private equity firm of the Stephen Bronfman family, is pursuing new food and beverage (F&B) investments through a differentiated partnership model. The Montreal, Quebec-headquartered company was early to identify growing demand for organic, specialty, ethnic and convenience food. Future investments will focus on “better-for-you” entrepreneurial F&B operations in both Canada and the United States.

Over three generations, the Bronfmans built Seagram into one of the largest beverage companies in the world. Claridge has been investing and growing mid-market food companies for nearly 20 years in North America. Its multiple investments total nearly $300 million and have created hundreds of millions in value, highlighting the benefits of combining industry experience and patient permanent capital.

stephen bronfmanExecutive Chairman Stephen Bronfman Among successful investments in the food industry where Claridge’s involvement led to a positive transformational impact are: Plats du Chef, a leading manufacturer of frozen snacks, soups, meals and appetizers; Glutino, the largest gluten-free food company in North America; Circle Foods, a manufacturer of frozen and refrigerated Mexican food; SunOpta, a major organic and specialty foods supplier; and Janes Family Foods, a frozen chicken products brand leader in Canada.

“Partnering with Claridge over 15 years was truly a successful journey for Plats du Chef (PDC) and a positive experience for our senior management team. Claridge’s experienced and talented professionals were extremely supportive. They challenged us to be better, while allowing our senior management team the autonomy to run the business on a daily basis,” said Tony Galasso, president and ceo of Plats du Chef Inc.

Claridge is a growth-oriented investor. Revenues of portfolio companies, which have ranged from $8 million to $108 million at the time of the initial investment, have been grown by six fold on average under Claridge ownership. The company focuses on driving sustainable growth by having a long-term vision (average hold period is nearly nine years) and making strategic investments.

“I have had an interest and passion for food and beverages my entire life. Our success in the industry is the result of our entrepreneurial spirit, strong strategic and operational support, expertise, good governance, the extensive Claridge network and, of course, the energy of our partners – the founders, management and all employees working in partnership,” said Executive Chairman Stephen Bronfman.

Future Investments

The demand for food and beverages continues to grow. However, noted Bronfman, consumers are much more interested in what they eat, and are demanding products that not only taste good but are better for them. He believes that North Americans are hungry for authenticity and looking for healthier and minimally processed emerging food brands.

“We will proactively target growing food and beverage companies supported by compelling consumer demand fundamentals and identifiable trends with a focus on nutrition, health and wellness,” said Pierre Boivin, the company’s president and ceo.