Canadian private equity firm, Clearspring Capital Partners, has acquired a majority stake in Regal Confections, a distributor of global sweet and chocolate confectionery brands in Canada.
The acquisition – which was made through Clearspring Fund III for an undisclosed sum – will reportedly strengthen Regal’s portfolio of products and brands and accelerate the company’s growth.
Founded in 1962, Regal specialises in the distribution of confectionery brands – including Tootsie Roll, McCormicks and Pez – to a range of channels such as club, grocery, convenience stores, and specialty independent stores.
Headquartered in Quebec, Regal operates four distribution centres, one co-packing operation and one production plant.
“Regal is the proud custodian of world-renowned confectionery and gourmet brands that Canadians recognise instantly. We have been partnering with leading manufacturers and retailers and contributing to their success for nearly 60 years,” said Joe Neufeld, chairman emeritus of Regal Confections.
Clearspring says it will inject capital into Regal to enable the distributor to pursue its growth strategy.
“We look forward to investing in people and in infrastructure to strengthen the portfolio of products and brands, and bolstering Regal’s national leadership as an independent value-added distributor in the candy, chocolate and gourmet foods segments,” said Milap Choksey, principal at Clearspring Capital Partners.
Marie-Claude Boisvert, partner at Clearspring Capital Partners, added: “We are impressed with the track record of growth at Regal, their enduring brand partner and customer relationships and the company’s ability to build and to maintain brand presence in a highly competitive marketplace.”
Following the transaction, existing shareholders including Walter Mueller will remain with Regal.
© FoodBev Media Ltd 2020