04 Nov Atlas Advisors acted as advisor to Fontaine Santé Foods on the divesture of a majority interest in healthy, plant-based food platform Fontaine Santé Foods to Arbor Capital
Arbor Investments (“Arbor”), a specialized private equity firm that focuses exclusively on investing in food, beverage and related industries announced today the acquisition of a majority interest in healthy, plant-based food platform Fontaine Santé Foods (the “Company”). Terms of the transaction were not disclosed.
Founded in Montreal, Quebec in 1990, Fontaine Santé Foods is the premier branded manufacturer of healthy and fresh hummus, refrigerated salsa and dips, tofu, pesto, salads and vegetable pates. Using plant-based and natural ingredients, the convenient and better-for-you products are marketed under nationally recognized brands including Fontaine Santé®, Garden Fresh Gourmet®, and Lantana® and found in the deli and refrigerated departments of North America’s largest grocery, mass, club and specialty retailers.
Fontaine Santé Foods President Melissa Latifi and senior leadership of the Company will continue in their operating roles leading the business.
“Our company has been committed to offering consumers nutritious food products that are healthy, fresh, convenient and most importantly taste great,” said Melissa Latifi.
“As we looked to accelerate our growth, especially in the United States, we had multiple options and interest and we selected Arbor as the best partner for us,” added Fontaine Santé Foods Chairman Max Latifi. “Their extensive experience in the food industry, combined with their in-house resources can help Fontaine Santé unlock new channels and opportunities. We’re excited to begin our next chapter of growth with Arbor.”
“Fontaine Santé Foods is one of the largest, independent refrigerated food manufacturers in North America, and we have tremendous respect for the business that Mr. Max Latifi has built,” stated Arbor founder and CEO Gregory Purcell. “Mr. Latifi is a dynamic entrepreneur with an exceptional reputation and Melissa is one of the finest CPG business leaders in the industry. We could not imagine a better fit with Arbor and our approach to turbo charging companies.”
With several manufacturing facilities, Fontaine Santé Foods has the ability to produce a wide range of products. Both parties believe the brands have the credibility and power to extend into additional markets and categories
“We’ve looked at a lot of businesses in the plant-based, healthy and better-for-you category,” said Arbor Senior Operating Partner Tim Fallon. “First and foremost, we’re taste investors and after trying the products we quickly realized why Fontaine Santé® is the number one branded hummus in Canada and Garden Fresh Gourmet® is the top branded fresh salsa in the United States. Consumers vote with their mouths and we believe these brands and products have an ownable taste differentiation to win in premium natural products.”
“From investing in state-of-the-art manufacturing, to winning with product innovation, Fontaine Santé Foods has produced an admirable track record of growth,” said Arbor Partner Alan Weed. “We look forward to supplementing the Company’s existing foundation with our collective resources to accelerate growth – both organically in the US and Canada, as well as through further partnerships and acquisitions. We also recognize the important role that Fontaine Santé Foods plays in the local community and are committed to making additional investments to promote continued growth and job creation going forward.”
The transaction marks Arbor’s second platform investment out of Arbor Fund V.
Robert W. Baird and Atlas Advisors served as financial advisors to Fontaine Santé Foods. Kirkland & Ellis and Stikeman and Elliott LLP served as Arbor’s legal counsel in connection with the transaction.