On Wednesday, the family-owned Mars Inc. bought sous-vide meal, sauce, and side dish maker Kevin’s Natural Foods.
According to sources, the deal values private equity-backed Kevin’s at approximately $800 million. This year, Kevin began considering selling the company.
McLean, VA-based Mars Petcare, Mars Snacking, and Mars Food & Nutrition account for $48 billion in yearly sales.
Kevin’s will become a food and nutrition brand after the sale.
Mars owns Pedigree, Whiskas, and Royal Canin, and has just acquired veterinary equipment company Heska Corp.
Mars, famed for candy brands like M&M’s and Snickers, has recently undertaken several acquisitions to expand and build its healthy food and snacking sectors.
Shahid Shah, Mars Food & Nutrition’s worldwide president, said Mars aims to acquire more food companies to expand.
“We are trying to deliver on a mission we have to enable healthier and more flavorful diets for consumers worldwide, while Kevin’s is trying to empower the busiest people to eat clean without sacrificing flavors,” Shah said in an interview.
“What really inspired us about Kevin’s was their purpose and their passion for food,” he continued.
Dan Costa, Kelsie Costa-Olson, and Kevin McCray created Modesto, California-based Kevin’s in 2019 with private equity companies TowerBrook Capital Partners and NewRoad Capital Partners.
The agreement, slated to close in the third quarter of 2023, involves TowerBrook and NewRoad selling their Kevin’s interest.
After being diagnosed with an autoimmune condition, McCray founded Kevin’s to promote healthy eating.
“Joining the Mars Food & Nutrition portfolio of brands will allow us to accelerate the development of more product innovations and support our mission of bringing Kevin’s to more consumers across markets,” McCray added.
Food and beverage dealmaking has been a bright light even as consumer transaction volumes remain low. Flagstone Foods bought Emerald Nuts from Campbell Soup Co (CPB.N) in May, while Unilever (ULVR.L) bought Yasso in North America last month.
Mars had Citi as financial adviser and Simpson Thacher & Bartlett, Covington & Burling, and ArentFox Schiff as legal counsel. Sheppard Mullin advised Kevin.
