The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Warburg Pincus has announced an agreement to acquire FlavorSum, a provider of natural flavour solutions, from The Riverside Company.

Although financial details of the transaction remain undisclosed, the acquisition is poised to accelerate FlavorSum's growth trajectory amid rising demand for natural ingredients in the industry.

FlavorSum specialises in the development and production of custom natural liquid flavours, extracts and flavour systems tailored to meet the needs of food and beverage companies, particularly those representing high-growth and innovative brands.

The company's expertise lies in its robust research and development capabilities, operational excellence and a strong commitment to customer service.

Brian Briggs, CEO of FlavorSum, expressed pride in the company’s accomplishments during its partnership with Riverside, noting significant advancements such as the integration of four complementary acquisitions and a substantial facility expansion.

He said: “Over Riverside’s investment period, FlavorSum acquired and fully integrated four complementary add-on acquisitions, completed a 35,000-square-feet facility expansion and invested strategically in R&D, applications, and sales and marketing".

Zach Lazar, managing director at Warburg Pincus, highlighted FlavorSum's unique service offerings, which include rapid R&D support and reliability, making it well-suited to cater to the growing preference for natural flavour solutions.

Lazar indicated that the partnership aims to further propel FlavorSum's growth, including the pursuit of additional acquisitions to strengthen its market position.

The transaction is anticipated to close in the third quarter of this year, marking a significant transition for FlavorSum as it embarks on its next growth phase under Warburg Pincus's guidance.

Alan Peyrat, Senior Partner at Riverside Micro-Cap Fund, acknowledged the successful collaboration with FlavorSum and expressed confidence in the company's future prospects with its new ownership.

Financial advisory roles for the transaction are being fulfilled by Houlihan Lokey and Cascadia Capital for FlavorSum, while BMO Capital Markets advises Warburg Pincus. Legal counsel for the respective firms includes Jones Day and Cleary Gottlieb Steen & Hamilton.

Image credit: © FlavorSum