This answer some questions..
There has been much angst over Mistral’s partial liquidating of their preferred equity position in Jamba recently. People have been wondering why and assuming the worst, they no longer believed in Jamba. At the time I said we cannot assume as to the why they are selling and they may be doing it to raise money for other deals. Today…..
It should be noted that Mistral’s Managing Partner Andrew Heyer…..sits on Jamba’s Board of directors…
Emphasis Mine:
Mistral Equity Partners, a private equity firm focused on the consumer and media sectors, announced today that it has acquired Country Pure Foods, LLC (“Country Pure” or the “Company”), a leading independent producer and distributor of premium quality juices in the United States, from affiliates of First Atlantic Capital and DN Partners.
“Country Pure’s broad product and packaging offering, along with its ability to service customers across the foodservice, retail and co-pack channels has positioned the Company as an industry leader,” commented Andrew Heyer, Managing Partner of Mistral Equity Partners. “Country Pure is poised to take advantage of a number of favorable trends in its core end markets, including growth in spending on health care and student meal programs, the continued outsourcing of certain product categories by major juice marketers, and expanding private label juice programs.”
Country Pure currently offers over 350 unique products, across 24 packaging types and 38 distinct flavors. The Company’s diverse product offering is supported by three flexible and efficient manufacturing facilities, located in Ohio, Florida and Connecticut.
“We are extremely pleased with our new ownership. They have vast experience in the food and beverage industries as well as significant resources that can immediately be applied to our strategic growth initiatives,” said Country Pure’s President and CEO Raymond K. Lee. “Mistral shares our vision for rapid growth through product and customer innovation we look forward to a profitable partnership.”
About Mistral Equity Partners
Mistral Equity Partners is a private equity firm comprised of highly experienced investment professionals and seasoned industry executives. The firm specializes in the consumer, retail, and consumer focused media sectors, and is especially attracted to businesses that are supported by strong demographic trends and fundamental changes in consumer preferences. Mistral’s principals have a long history of working together and identifying successful investment opportunities with these characteristics. Mistral’s portfolio includes Shearer’s Foods, Inc.; Jamba, Inc.; Worldlynx Wireless LP; Orval Kent Food Company; and LoveSac Alternative Furniture Co.
So, what makes more sense? Mistral is down or Jamba OR simply need cash to complete the Pure Country deal. If we look at Pure Country we see and organization that seems to compliment Jamba perfectly. We know Jamba is getting into school lunch programs and Pure Country is already there, this could be a platform to accelerate those plans.
This looks to me like a platform to expand Jamba’s premade Smoothies. Jamba could not so the deal on its own…but having a Board member do it? Smooth…This of course is my opinion but to me it sure does make a whole lot of sense…
(HT Reader jburg for finding this…)