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Investment case studies
Beverage Company, Foodservice and Specialty Distribution equity investments
 
S.T. Specialty Foods, Inc. is the leading North American manufacturer of private label dry shelf-stable dinners and side dishes, including macaroni and cheese dinners, add-meat skillet dinners, pasta side dishes, pasta salads, rice mixes, and potato side dishes.
 
 
SPC Investment Date 
March 2002

SPC Investment Thesis
  • Leading market position in the private label dry-pasta dinner category with visible reputation for 
    flexibility, innovation, and customer service
  • Excellent growth prospects in the private label dry dinner category due to the increasing importance
    of private label to retailers and increased consumer demand for value and convenient products
  • Ownership of manufacturing provides significant product quality and cost advantages, permitting 
    higher margins
  • Experienced management team capable of running a larger company and managing rapid growth
  • Platform to expand into new products and customers

Key Sources of Value Creation
  • Strategic Direction: Collaborated with management to develop and continuously refine a multi-year 
    strategic plan that involved an extension of the product line with new and existing customers while 
    preserving company’s strong internal culture.
  • Operations: Leveraged SPC contacts to acquire a state-of-the-art production facility from American 
    Italian Pasta Company, increasing the Company’s capacity by 50% and allowing management to 
    pursue profitable revenue growth without supply concerns.
  • Industry Contacts: Introduced the Company to a new ingredients supplier.
  • Financial Performance: Navigated unprecedented raw material volatility to maintain margins and 
    grow sales and EBITDA by 3.1x and 3.9x, respectively, during SPC’s ownership.

Exit
SPC sold S.T. Specialty Foods to Windjammer Capital Investors in December 2008


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S.T. Specialty Foods, Inc.
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