CIC Capital Partners has sold McClancy Foods & Flavors to NovaTaste, a portfolio company of PAI Partners

McClancy Foods & Flavors

Headquartered in Fort Mill, South Carolina, McClancy Foods & Flavors is a research and development (R&D)-focused solutions expert that blends and packs custom dry ingredients for customers throughout the U.S. The company conceptualizes, formulates and manufactures a wide range of dry, food-grade products, including batters and breaders, protein seasonings and marinades, dry rubs and topical seasonings, as well as other mixes and ingredient applications. McClancy’s highly flexible and technical manufacturing process complements the company’s responsive, in-house R&D team, enabling it to make difficult-to-replicate custom formulations for the foodservice and industrial end markets. For more information, please visit www.mcclancy.com.

The Deal

In 2020, CIC Capital Partners partnered with Stephen Andresen (Chief Executive Officer) in a recapitalization and growth investment of McClancy. Following a period of strong organic growth and new customer wins, as well as investments to increase capacity, improve automation and create a state-of-the-art R&D facility, CIC engaged Lincoln International to find a committed partner to support the company’s substantial pipeline of transformational growth opportunities.

Lincoln’s ingredient expertise and access to global strategic buyers allowed for a targeted process on an accelerated timeline. By joining forces with NovaTaste, a global leader in taste innovation, McClancy gains a strong partner while continuing to operate under the McClancy brand. Its U.S. customers will now be able to explore opportunities beyond borders, leveraging NovaTaste’s innovation capabilities and extensive international network and infrastructure.

Our Perspective

David Houser, Lincoln International Managing Director who led the transaction, commented, “McClancy exhibits all the attributes of an attractive ingredients investment. The company’s technical expertise, difficult-to-replicate, proprietary formulations, end-to-end value proposition, sticky customer base and impressive growth trajectory were very attractive for strategic ingredient acquirers. The company is well-positioned for continued growth with existing customers as well as new customer wins from their extensive pipeline of near-term, highly actionable opportunities.”

For Lincoln, the transaction continues its success in food ingredients. Prior to the sale of McClancy, Lincoln successfully represented Giraffe Foods, Woodland Foods, UAS Laboratories and other high profile, fast-growing ingredient companies. Like McClancy, these prior clients appealed to a deep pool of international strategic acquirers. Food ingredients is a cross-border marketplace and, with relationships and experience from its global food practice, Lincoln is uniquely positioned to drive strong outcomes in the sector.

CIC Capital Partners

CIC is a middle-market private equity (PE) firm that invests in growth-oriented companies, primarily owner-operator led companies, across sectors with a particular focus on the food, consumer and industrial industries. CIC manages the personal capital of its investment team, operating partners and strategic investors and seeks to partner with owner-operators, founders and management teams. CIC looks for opportunities where it can leverage the collective experience of its investment team and its operating partners, who are successful chief executive officers and entrepreneurs, to guide, support and add value to portfolio companies. Based in Dallas, the firm has been generating wealth in PE investing for its investors and management teams for more than 30 years. For additional information, please visit www.cicpartners.com.

NovaTaste

NovaTaste is a global leader in taste innovation, providing a range of value-add savory ingredients and blends to improve taste and texture, as well as extend the shelf life of food products. It operates a range of brands, including Wiberg and Piasa. The company employs 1,900 employees across six business units worldwide, who are united by NovaTaste’s purpose – to revolutionize the way the world experiences food. NovaTaste serves more than 11,000 customers, including food manufacturers, butchers and foodservice players, across Europe, North America and Asia. For more information, please visit www.novataste.com.

PAI Partners

PAI Partners is a pre-eminent PE firm investing in market-leading companies across the globe. The firm has approximately €29 billion of assets under management and, since 1994, has completed more than 100 investments in 12 countries and realized more than €25 billion in proceeds from more than 60 exits. PAI has built an outstanding track record through partnering with ambitious management teams where its unique perspective, unrivalled sector experience and long-term vision enable companies to pursue their full potential and push beyond. For more information, please visit www.paipartners.com.

Share: