Cherry Tree & Associates | Notable M&A Transactions, March 2024
Justin Krabben
VP Investment Banking | Helping Business Owners Maximize Value | Industrial, Consumer, IT-Services, Technology
Leading Beverage Company Liquid Death Raises $67 million
Liquid Death, a leading health-focused beverage company, secured $67 million in financing, driving its valuation to $1.4 billion. Renowned for its rapid growth across water, flavored sparkling water, and iced tea categories, the company plans to utilize the funding for product innovation and meeting the high demand for its upcoming flavored sparkling water and iced tea flavors. With a robust retail presence, substantial growth trajectory, and significant social media following, Liquid Death solidifies its position as a key player in the non-alcoholic beverage market.
?Ashley Home Acquires Resident Home
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Ashley Home, a prominent name in the home furnishings industry, has acquired Resident Home, known for its mattress brands such as Nectar, DreamCloud, Awara, and Siena. This strategic move allows Resident to diversify its product range and expand its global presence, leveraging Ashley's extensive retail network. The collaboration capitalizes on Ashley's vast brick-and-mortar presence spanning 1,125 locations, complemented by Resident's expertise in data science and e-commerce technology. This partnership arrives amidst a challenging period in the home furnishings market, marked by dwindling sales and numerous sector bankruptcies, positioning the joint companies to navigate these challenges effectively.
Klean Kanteen Acquired by Think Better Group
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Klean Kanteen, recognized for its reusable stainless-steel products, has been acquired by the Think Better Group, in collaboration with the ABN Amro Sustainable Impact Fund. This acquisition aligns with the Think Better Group's mission to reduce single-use plastics across various product lines. Klean Kanteen's pioneering efforts in producing BPA and lead-free drink containers complement the group's sustainable brand portfolio. With a presence in over 100 countries, the partnership aims to expand Klean Kanteen's reach in North America while enhancing its presence in European and Asia Pacific markets.
Blue Sun Soda Shop Acquired by Grandpa Joe’s Candy Shop
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Grandpa Joe's Candy Shop, known for its iconic $5 Candy Buffet, is expanding into Minnesota by acquiring three Blue Sun Soda Shop locations. These shops, cherished by the Minnesota community since 2015 for their craft sodas and treats, will now be under the Grandpa Joe's brand. This move represents Grandpa Joe's first venture into Minnesota, aligning with its goal of offering unique experiences nationwide. With existing locations across several states, the renovation of the flagship Spring Lake Park store into a Grandpa Joe's Candy Shop, featuring the World's Largest Soda Shop, underscores the brand's commitment to providing unparalleled experiences and expanding its distribution network.
Sovos Brands Acquired by Campbell Soup
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Campbell Soup (NYSE: CPB) completed its acquisition of Sovos Brands for $2.7 billion in cash, equating to $23 per share. Sovos Brands, known for products like Rao’s pasta sauces and noosa yogurts, achieved $1 billion in net sales in 2023. This acquisition leads to the formation of a new business unit, Distinctive Brands, integrating Pacific Foods, Rao’s, Michael Angelo’s, and noosa. Mark Clouse, CEO of Campbell Soup, emphasizes that this strategic move strengthens their portfolio, positioning Campbell Soup as a trusted and growth-focused leader in the food industry.
IBluestar Alliance Acquires Amsterdam-based Scotch & Soda
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Bluestar Alliance, a New York-based brand management company, has acquired Dutch fashion brand Scotch & Soda, further establishing its presence in key markets such as the Netherlands. The addition of Scotch & Soda, famous for its chic style, enriches Bluestar's diverse portfolio, alongside brands like Hurley and Bebe. With a focus on maintaining Scotch & Soda's luxury retail strategy while broadening its appeal to a wider audience, Bluestar aims to introduce the brand to more trendsetters seeking self-expression through fashion.
Slam Acquires College Basketball Apparel Brand 19Nine
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Slam, a prominent basketball magazine and lifestyle company, has acquired college basketball apparel company 19Nine. This merger combines Slam's merchandise team with 19Nine, expanding Slam's reach into college sports licensing and apparel. The deal, facilitated by Slam's parent company JDS Sports, solidifies Slam's position in basketball culture and aligns with its goal of offering a comprehensive range of basketball-related products. With 19Nine's expertise in college basketball licensing and apparel, Slam aims to tell authentic stories and create high-quality merchandise for basketball fans.
?People Focused Nutrition Company Goli Nutrition Acquired
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Goli Nutrition, known for its health focused gummy products, has been acquired by a group of buyers including Bastion Capital, Group KPS, and one of its original founders. This acquisition is aimed at bolstering Goli's financial standing, enabling it to venture into new markets, develop innovative products, and strengthen partnerships with global retailers. With the support of robust sponsors and a renowned brand backed by loyal customers, the transaction positions Goli to operate and innovate more effectively, setting the stage for sustained growth and success in the future.
Hard Kombucha Company Flying Embers Acquired by JuneShine
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Flying Embers, a prominent hard kombucha company founded in Ojai, California has been acquired by its major competitor, JuneShine, headquartered in San Diego. This transaction solidifies JuneShine's position as the leading alcoholic kombucha seller in the U.S. With the merger, Flying Embers' founders will join JuneShine's board. While both brands will remain distinct, production of Flying Embers' products will transition to JuneShine's San Diego brewery. The deal signifies a strategic move for both companies to expand their market presence and capitalize on the growing demand for alternative alcoholic beverages.
Beyond Inc Acquires Flash Sale and E-commerce Retailor Zulily
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Beyond Inc., the owner of retailers Overstock and Bed Bath & Beyond, has acquired Zulily, a flash sale pioneer and e-commerce retailer. This acquisition is aimed at strengthening Beyond's position in the off-price market and expanding its brand portfolio. By incorporating Zulily's 18 million customers, Beyond anticipates driving revenue growth and leveraging synergies across product categories. According to Dave Nielsen, CEO of Overstock, integrating Zulily into their asset-light business model will enable them to offer a wider range of products with flash sale deal pricing, enhancing their core competencies in furniture, home furnishings, apparel, footwear, jewelry, and watches.
Aroma360 Acquires NextScent
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Aroma360, a prominent provider of healthy home and business scenting solutions, has broadened its portfolio through the acquisition of NextScent, forming Aroma360 Pro. This strategic step elevates Aroma360 Pro as an essential for homes, businesses, and top-tier brands aiming to maximize the impact of scent. Offering advanced on-premises solutions and a wide array of retail and commercial scenting products, Aroma360 reaffirms its position as the world leader in healthy scent solutions, catering to homes, multi-location businesses, upscale properties, and brands worldwide.
California-based Mad River Brewery Acquired by Indigenous California Tribe
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California-based Mad River Brewery has been acquired by the Paskenta Band of Nomlaki Indians, a tribal entity also involved in the casino industry. The acquisition encompasses the Mad River brand, recipes, intellectual property, and brewery machinery. The Paskenta tribe's objective is to expand Mad River's economic portfolio and maintain its growth trajectory while integrating tribal identity into craft beer production. Despite the change in ownership, Mad River's operations and employment structure remain unaffected.
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