CHARLOTTE, NC. — Falfurrias Capital Partners, Charlotte, NC., announced its investment in Carolina Foods, LLC, Charlotte, NC. The terms were undisclosed.
Carolina Foods is a manufacturer of sweet baked goods and produces some of the largest bakery brands globally, such as its Duchess product line. Its approximately 400 employees are expected to be retained through the transaction. Paul Scarborough, chief executive officer, and third-generation leaders Katie Scarborough Caldwell and Ruffin Scarborough will remain with Carolina foods.
“This partnership will give us the financial resources and management expertise to take Carolina Foods to another level,” Mr. Scarborough said. “Falfurrias has a tremendous track record of helping the companies they invest in realize next-stage growth, and their expertise in food marketing and distribution will be especially useful to our organization.”
Over the past two years, Falfurrias Capital Partners has invested in two other companies in the packaged food category, Sauer Brands, Inc., Richmond, Va., and Chicago Custom Foods, Elk Grove Village, Ill.
“We have been aware of Carolina Foods for a number of years and have been impressed by the success of the business,” said Falfurrias Partner Chip Johnson. “We always enjoy partnering with companies in Charlotte, and this deal is especially exciting to us given our recent focus on the packaged foods market. We feel we can add a great deal of value to the company based on our team’s knowledge of food manufacturing, marketing, and distribution.”
Tad Dickson, former chief executive officer of Harris Teeter, Matthews, NC., and Mary-Ann Somers, former general manager of Hershey’s confection business and Coca-Cola’s water, tea and coffee segment, advised Falfurrias during the transaction process. They will continue to serve on Carolina Foods’ board of directors.
“Carolina Foods has tremendous growth potential that will be unleashed through this investment,” said Marc Oken, chairman, Falfurrias Capital Partners. “We’ll be exploring a number of options —from increasing production through new equipment to expanding the product line to potential complementary acquisitions —to help Carolina Foods capture its share of the $7 billion snack foods sector.”