Audax Private Equity has purchased Accent Food Services from Silver Oak Services Partners LLC. Financial terms of the deal were undisclosed.
Accent Food Services, based in Austin, Texas, is an independent distributor of “fresh” food, snacks, and breakroom refreshment services throughout Texas. The target services vending machines, mini-markets and coffee shops, web ordering, and will soon offer catering services. From Reese’s and Snickers to other name brand candies, Accent Food also offers a “swap this” option for clients who prefer healthier food choices. Since Silver Oak’s original investment in Accent Food, the target has completed 16 add-on acquisitions, grew its technology capabilities, launched a new micro-market service, and also entered three new Texas regions.
Silver Oak, a lower-middle market private equity firm founded in 2005, invested in Accent Food in December 2008. The firm looks to invest in consumer goods, business and healthcare service companies. Silver Oak typically makes control investments in service businesses with revenues between $15 million and $150 million.
Audax, a Boston private equity firm, backs lower middle-market companies with up to $35 million in Ebitda. The firm has been active in 2016 by: raising a $1.6 billion senior loan fund to target business services and consumer product deals; purchasing RelaDyne, a fuel and lubricant distributor from AEA Investors LP; and selling Laborie Medical Technologies, a Canadian maker of medical diagnostic tools, for $640 million. Audax won Mergers & Acquisitions’ 2015 Mid-Market Award for Private Equity Firm of the Year.
Recent food and snack deals include: Snyder’s-Lance Inc. (Nasdaq: LNCE) selling its Diamond of California brand of nuts to focus on its snack business; ConAgra Foods Inc.’s (NYSE: CAG) completed sale of the JM Swank food ingredient distribution business to Platinum Equity; Dr Pepper Snapple Group Inc.’s (NYSE: DPS) agreement to buy acquire all of beverage company Bai Brands LLC; McCormick & Co.’s (NYSE: MKC) buying of Enrico Giotti S.p.A., an Italian manufacturer of flavors and extracts, for nearly $127 million in cash. Lincoln International LLC acted as financial adviser to Accent Food and Silver Oak, while Locke Lord LLP served as legal counsel.