August 12, 2008
Wind Point Partners Acquires Ryt-way Industries
Wind Point Partners today announced that it has acquired Ryt-way Industries in partnership with David Finch and George Bayly.
Ryt-way, based in Lakeville, Minn., is a leading contract manufacturer and packager serving the food industry. Ryt-way provides primary and secondary co-manufacturing, logistics and inventory management services with current capabilities focused on foods such as ready-to-eat cereals and meals, snack foods, crackers, mixes and convenience foods. By consistently delivering high quality co-manufacturing and packaging services in an efficient, timely and cost effective manner, Ryt-way has been able to foster deep long-term partnerships with its customers, leading consumer food companies.
Consistent with Wind Point’s strategy of partnering with a top caliber CEO prior to acquisition, David Finch will join Ryt-way as CEO. Previously, David was the Group Vice President of Johnsonville Sausage where he led Johnsonville, a privately-held food company, and grew revenues from $250 million to over $500 million. In addition, David will be joined by George Bayly, former Chairman and CEO of Altivity Packaging, who will become Chairman of Ryt-way’s Board of Directors; Larry Muma, former Vice President of Operations for CNS/Breath Right and previously Vice President of Operations at Pillsbury, who will become Chief Operating Officer; and Mary Beth Fong, former CFO of Young Americas with 20 years of experience in the food industry, who will join Ryt-way as CFO.
David Finch said, “Ryt-way is a market leader in a growing industry. The people of Ryt-way are its strength — they have a long history of success and growth. During our eight months of due diligence, we developed a detailed value creation plan that we will start executing immediately, and I look forward to working with Wind Point and the entire Ryt-way management team as we implement that plan to grow and expand the business.”
Mark Burgett, a Wind Point managing director, commented, “Ryt-way is excellent addition to our portfolio and fits well with our experience and developed networks within the food industry. We are confident in David and his team’s abilities to grow the company through adding customers, driving productivity and manufacturing improvements, and completing expansion projects and add-on acquisitions.”
Wind Point’s other food industry investments include Nonni’s Food Company, a manufacturer and marketer of specialty premium baked goods, such as biscotti and bagel and pita chips, that was sold to Vivartia in March 2008, Bakery Chef, a leading provider of bakery products to the foodservice industry that was sold to Ralcorp in 2003, and Santa Maria Foods, a leader in the Canadian market for Italian specialty foods that is still in Wind Point’s portfolio.
For senior debt, CIT Investment Banking Services, Sponsor Finance, served as Co-Lead Arranger and Joint Bookrunner, CIT Commercial & Industrial served as Syndication Agent, GE Capital Markets served as Co-Lead Arranger and Joint Bookrunner, and ING Capital LLC served as Documentation Agent. Norwest Mezzanine Partners provided subordinated debt. Legal counsel for Wind Point on the transaction was Kaye Scholer, LLP.
About Wind Point Partners®?
Wind Point Partners is a private equity investment firm with approximately $2.5 billion in capital under management. Wind Point focuses on partnering with top caliber executives to acquire under-managed middle market businesses where it can establish a path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
About Ryt-way Industries?
Ryt-way is a leading contract manufacturer and packager serving the food industry. Its current capabilities are focused on foods such as ready-to-eat cereals and meals, snack foods, crackers, mixes and convenience foods. Additional information about Ryt-way is available at www.rytway.com.