Confectionery merger forms business with annual revenue of $200m

By Jane Byrne

- Last updated on GMT

Related tags: Private label, Finance, Debt

Confectionery merger forms business with annual revenue of $200m
A new merger in the US private label confectionery sector will result in the formation of a packaging and distribution business with annual revenues of over $200m, claims the two companies involved in the deal.

The merger involves New York based Tzetzo, a provider of branded and private label confectionery products and Wythe Will, part of Slate Capital investment group, a distributor of branded and private label packaged gourmet food and confections.

The companies claim the merged entity will benefit its existing customers through the expanded offering of complementary products and services and through increased geographic coverage.

Financing

Terms of the deal were not released by the companies but Triangle Capital Corporation disclosed this week that it invested $11.8m in support of a merger of the two companies. “The investment consisted of subordinated debt and equity,”​ said the investors.

“Wythe Will and Tzetzo have separately demonstrated strong historical operating performance and we believe the combined companies' complementary geographic footprint and customer base will create significant opportunities going forward,"​ commented Garland Tucker, president and CEO of Triangle.

Additional equity investment and mezzanine financing for the deal was said to come from investment houses, Spring Capital Partners and Centerfield Capital Partners, while M&T Bank also led a syndicate in making senior debt financing available, said the confectionery firms.

Management

The managements of Wythe Will and Tzetzo said they will team up to run operations.

The firms jointly announced that Gordon Angles, whose role as CEO of Wythe Will spans over 30 years, will be the CEO of the company, and Keith McDaniel, who has been at Tzetzo for approximately 20 years, will be president of the merged entity.

Related topics: Markets

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