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SMALL BUSINESS
Sun Capital Sells Timothy’s Coffees of the World to Green Mountain Coffee Roasters
Bruegger’s Acquires the Assets of Timothy’s Retail Operations to Build Presence in Canada
Business Wire
Sun Capital Partners, Inc. (“Sun Capital”), a private investment firm
specializing in leveraged buyouts and investments in market-leading
companies, today announced that Timothy’s Coffees of the World, Inc.
(“Timothy’s”), one of its affiliated portfolio companies, has been
purchased by Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) for
approximately $157 million in cash, subject to adjustment. Timothy’s is
a leading supplier of specialty coffees to offices, hotels, grocery
stores, retailers and food service establishment throughout Canada and
the U.S.
Immediately prior to the purchase, Timothy’s sold its franchise
restaurant operation to Bruegger’s Enterprises, Inc., another Sun
Capital portfolio company which operates fast casual neighborhood
bakery-cafes in 24 states. The restaurant operation includes 139
locations across Canada doing business under the Timothy’s World Coffee,
Michel’s Baguette Bakery Café, and mmmuffins® brands, as well as Levain
Bakery, a high-end specialty bakery. The Bruegger’s acquisition of the
Timothy’s retail operation not only expands the company’s footprint into
Canada, but also adds new distribution channels for the Bruegger’s
kettle-boiled “New York-style” bagels.
"Timothy's is a true growth and success story where revenues and profits
were nearly doubled in 2009 over last year despite a challenging
economic environment," said M. Steven Liff, senior managing director of
Sun Capital. "We invested prudently to grow Timothy's with new product
lines, greater production capacity, improved systems, and expanded
distribution, and enjoyed a productive partnership with George Michel
and Domenic Della Penna, and the rest of the management team. We are
pleased that our investors are being well compensated for the value that
has been created at Timothy’s through a timely cash sale to the right
strategic owner, and wish GMCR well with the business going forward."
Among the enhancements Sun Capital operators and the management team
implemented were a significant expansion of Timothy’s packaging capacity
to increase K-Cup production to over 250 million cups per year, signing
new long-term licensing agreements, and launching innovative products
into multiple channels including specialty coffees such as Emeril’s
licensed varieties, the Original Donut Blend and Kahlua flavored coffee.
The sale of Timothy’s, a Sun Capital Partners V, LP portfolio company,
follows the recent successful exit of Tarami K.K., an industry pioneer
in processing fruit and fruit-flavored gelatin cups, resulting in
attractive returns to limited partners of Sun Capital Partners IV, LP.
During the third and fourth quarters of 2009, Sun Capital Partners IV
and V also made significant dividend payments with respect to
investments in CanGro Foods, a Canadian marketer of canned fruit,
tomato, vegetable, and soup under such known brands as Del Monte and
Aylmer, and Sunrise Growers-Frozsun Foods, a maker and distributor of
fresh and frozen strawberry products.
About Sun Capital Partners, Inc. (
www.suncappart.com)
Sun Capital Partners, Inc. is a leading private investment firm focused
on leveraged buyouts, equity, debt, and other investments in
market–leading companies that can benefit from its in–house operating
professionals and experience. Sun Capital affiliates have invested in
and managed more than 210 companies worldwide since Sun Capital’s
inception in 1995 with combined sales in excess of $40 billion. Sun
Capital has offices in Boca Raton, Los Angeles, and New York, as well as
affiliates with offices in London, Paris, Frankfurt, Shenzhen, and
Shanghai. Sun Capital, one of the most active private investment firms
in the U.S., closing 170 transactions from 2002 through 2009, was the
recipient of the
M&A Advisor Private Equity Firm of 2008
award.
About Timothy’s World Coffee Retail Operations
Timothy's World Coffee owns and operates 139 retail stores under the
Timothy's World Coffee brand, as well as mmmuffins and Michel's Baguette
quick service casual restaurants. For over 30 years, Timothy's has
provided its customers with top quality products and services, and these
traits are still the foundation of the company today. Approximately 70%
of its stores are located in Ontario.
About Bruegger's Enterprises, Inc.
www.brueggers.com
Bruegger's Enterprises, Inc., an affiliate of Sun Capital Partners,
Inc., is a leader in the fast casual restaurant segment. Bruegger's is
dedicated to serving delicious, wholesome food that brings guests back
again and again. In 290 neighborhood bakery-cafes in 24 states and the
District of Columbia, Bruegger's offers a warm, comfortable setting for
guests to enjoy a wholesome meal with family and friends. Famous for
authentic New York-style, boiled and baked bagels, Bruegger’s entire
menu is free of trans-fats and features a Fair Trade Certified
TM
coffee everyday from Green Mountain Coffee
®. Bruegger's
bakers use their expertise to bake not only bagels, but an array of
fresh breads including honey wheat, hearty white and the exclusive
Softwich. Guests can count on innovative menu items, including unique
cream cheese flavors, delicious breakfast sandwiches and wraps,
hand-tossed salads, hearty soups, signature and custom order sandwiches
and desserts. Founded in 1983, Bruegger's is headquartered in
Burlington, Vermont and supports its neighbors in every community it
serves.
Copyright Business Wire 2009
2009-11-13 10:47:00
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