Sector News

Beloved Detroit snacking brands Kar's Nuts and Sanders merge

October 26, 2018
Consumer Packaged Goods

KNPC Holdco, LLC, a leading manufacturer of nut and trail mix snacks sold under the Kar’s® and Second Nature® brands, announced today the completion of its merger with Morley Candy Makers, LLC, a maker of premium confectionary products sold under the Sanders Fine Chocolatiers® brand.

The merger brings together two iconic brands with deep roots in the Detroit area. Kar’s Nuts was founded in Detroit in 1933 by Sue Kar, who roasted peanuts in her home to sell outside nearby Navin Field, which later became Tiger Stadium. Similarly, Sanders was founded in 1875 when Fred Sanders Schmidt opened his first Sanders candy shop in Detroit.

The combination of Kar’s Nuts and Sanders creates a leading platform within the snacking industry, offering a range of premium trail mix, nuts and confectionary products across three brands. The merger will provide Sanders with expanded national distribution opportunities and offer Kar’s Nuts additional production and product innovation capabilities. Sanders will operate as its own division within the combined company, and the workforces of both companies will remain in place.

Sanders CEO Brian Jefferson said, “As we explored strategic opportunities for Sanders®, it was critical to identify a partner who truly understood and valued our brand and our employees. We are extremely excited about this merger as we feel confident that it will preserve cherished Sanders products, bring a new level of creativity to our offerings that is sure to delight customers, and continue to take care of our employees.”

Kar’s Nuts’ acquisition of Sanders represents its first acquisition following the investment in Kar’s Nuts in March 2017 by an affiliate of Palladium Equity Partners, LLC (along with its affiliates, “Palladium”), a middle market private equity firm with approximately $2.7 billion in assets under management. Palladium and other Kar’s Nuts equity holders made follow-on investments to support the acquisition and the future growth of the combined company.

“Sanders is a successful company with a legacy of customer loyalty and quality products. As we consistently evaluate growth opportunities, this merger is ideal for Kar’s Nuts as we expand our reach in the snacking industry,” commented Kar’s Nuts President Nick Nicolay. “We look forward to the Sanders family joining the Kar’s Nuts family and continuing to offer products that consumers across the country appreciate and enjoy.”

Nick Nicolay will serve as CEO of the combined company which will be headquartered in Madison Heights, Michigan. Brian Jefferson will remain in place through the transition with plans to retire once the two companies are fully integrated.

KPMG Corporate Finance LLC served as financial advisor to Sanders on the transaction. Giarmarco, Mullins & Horton, P.C. served as Sanders’ legal advisor. Jaffe Raitt Heuer & Weiss, P.C. served as legal advisor to Kar’s Nuts.

Source: Kar’s Nuts

comments closed

Related News

April 14, 2024

McCain Foods completes acquisition of Strong Roots

Consumer Packaged Goods

McCain Foods has completed the acquisition of Irish plant-based frozen food manufacturer Strong Roots. The acquisition follows McCain and Strong Roots’ strategic partnership, which began in 2021 and resulted from a $55 million investment.

April 14, 2024

Cargill’s alternative cocoa collaboration gets off the ground as cocoa prices continue to climb

Consumer Packaged Goods

Cargill partners with Voyage Foods to scale up alternatives to cocoa-based products to meet consumers’ indulgence needs. The commercial partnership will also provide food manufacturers with nut spreads produced with no nut or dairy allergens used in the recipe formulation.

April 14, 2024

L’Occitane stock still halted as owner reportedly tries again to privatize beauty company

Consumer Packaged Goods

L’Occitane International owner Reinold Geiger is reportedly close to taking the company private in a deal with Blackstone. The French skin care company’s filing halted trading of its Hong Kong-listed shares this week. This is the second time in months that the Australian billionaire has attempted a buyout.

How can we help you?

We're easy to reach