PERHAM, MINN. — Shearer’s Foods, L.L.C. is expanding again in the snack food category, planning to make its third acquisition within two years. Shearer’s Foods will buy three Barrel O’ Fun snack foods companies owned by KLN Enterprises, Inc. under an agreement reached by Shearer’s and KLN. The companies are in Perham, Phoenix and Waterford, Pa.
Barrel O’ Fun makes such products as traditional and kettle-cooked potato chips, whole corn tortilla and corn chips, cheese puffs and curls, gourmet popcorn and baked potato crisps. The products are shipped nationwide to retail stores, food service organizations and private label customers.
“It was the right partner at the right time,” said Kenny Nelson, president and chief executive officer of Perham-based KLN Enterprises, when the deal was announced Oct. 7. “After 51 years in the manufacturing business, this was a good fit. Our family is excited as we will maintain an investment in the new ownership of the Barrel O’ Fun companies.”
Local management will remain in place for each of the Barrel O’ Fun companies. The transaction remains subject to customary regulatory approval. Closing is expected by the end of the year.
Shearer’s Foods has been active since being acquired in 2012 by Wind Point Partners, a private equity firm based in Toronto, and the Ontario Teachers’ Pension Plan. Shearer’s Foods, based in Massillon, Ohio, made two acquisitions in 2014. The company acquired the assets of the Medallion Foods business from ConAgra Foods, Inc. for $33.5 million. Medallion makes value brand and private label corn-based snack products. Also in 2014, Shearer’s Foods purchased the private brands business of Snyder’s-Lance, Inc. for $430 million.
Shearer’s currently manufactures products at eight facilities in the United States and Canada.
