Argus Capital, which has offices in Dallas and New York, was founded by Shane Goodwin and Timothy Sullivan, two veteran investment bankers who left Goldman Sachs & Co earlier this year to start their own merchant banking firm – a growing trend among executives from the big banks that accepted government funding.
Argus Capital focuses on providing flexible and creative private equity solutions for the growing needs of the middle market. Argus Capital invests in and advises middle-market companies, like Big Red, that are pursuing strategic or financing alternatives.
Big Red – founded in 1937 and based in Waco, Texas – is the sixth-largest carbonated soft drink company in the US. In 2007, Big Red was purchased by Gary Smith, the company’s CEO, with the financial backing from Citigroup Venture Capital and Goldman Sachs. Smith was previously the co-CEO of Red Bull North America Inc.
“Argus Capital was attracted to Big Red’s superior management team and the tremendous growth prospects of its well-known, consumer-preferred brands,” said Shane Goodwin, managing partner and co-founder of Argus Capital. “Closing this acquisition in this challenging market is testament to our firm’s ability to access capital and deliver creative financing solutions. We look forward to partnering with Big Red’s management team as they continue to build brand equity in the beverage sector.”
As part of the acquisition, Goodwin has joined the board of directors of Big Red Inc and All Sport Inc.
Big Red has a diversified beverage portfolio, including:
All Sport recently partnered with Dr Pepper Snapple Group Inc to introduce All SportNaturally Zero, the first and only zero-calorie sports drink with Rebiana, an all-natural sweetener from stevia. Dr Pepper Snapple Group holds an equity stake in Big Red.
The partners of Argus Capital have extensive experience advising and financing consumer-related companies, including PepsiCo, Sears, Tommy Hilfiger, Tyson Foods, Wal-Mart and Whole Foods.
Source: Argus Capital Partners
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