News & Insights

Denali Ingredients Seeks Acquisitions

Wednesday, October 02, 2013
 

Rua Associates has been retained by Denali Ingredients, a privately-held widely recognized food ingredients manufacturer and supplier specializing in sweet ice cream and confectionary ingredients.

Background on Denali:
The Company is seeking to acquire North American-based manufacturers and suppliers of complementary food ingredients and flavor systems.

The Company is well-established and well-respected in the ingredients industry. Its primary objective in acquiring other companies is three-fold:

  • Growth through diversification into additional industries. Presently, the Company is concentrated heavily in one market segment.
  • Acquisition of team members, particularly in sales and operations.
  • While the Company continues to grow at a respectable 7-10% annual rate organically, the trend is slowing and it is therefore seeking alternative ways to expedite the pace.
The Company has a track record of growth and success in acquisition integration, recently acquiring and integrating a 30+ employee company and returning it to profitability.

The Company takes pride in its commitment to its employees and community, investing significant amounts of time and money into facility improvements, employee engagement and charitable organizations.

Criteria:
Potential candidates include, but are not limited to:

Product Type

Industry Type

ice cream flavors

compound flavors

fundraising industry

fruit preps/purees

variegated sauces

food service market

baking or baking related 

seasonings

bakery markets

confections

extruded dough

cereal market

flakes and chunks

Target:  North American-based manufacturers and suppliers of food ingredients products.

Revenue: $2-$20MM in revenue, however exceptions will be made.

EBITDA: Management is open to discuss acquisitions at a range of profitability/performance.

Time Frame: Management will give preference to candidates that desire to complete a transaction in 2013, however management would sincerely enjoy beginning relationships with owners that are interested in discussing their longer-term exit strategy, and may intend to sell their company in 2-5 years. 

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