Continuing to invest out of its seventh fund, Brynwood Partners has agreed to acquire Sunny Delight Beverages Co., which sells the Sunny D, Fruit2O and Veryfine drink brands, for a reported $195 million, including debt. The seller is Winter Street Opportunities Fund, L.P., a vehicle managed by J.W. Childs Associates. The target, which is based in Cincinnati, Ohio, was formed in 2004 by J.W. Childs when it bought the Sunny Delight brand from The Procter & Gamble Co. (NYSE: PG). The transaction is expected to close during the first quarter and is subject to regulatory approval.

Sales of Sunny Delight have fallen over the last decade, according to Euromonitor International, but the 50-year-old brand remains well known to consumers. “The iconic Sunny Delight brand, with its highly recognizable bottle design, has a loyal customer following and is an important brand for retailers in the U.S. and Canada,” says Brynwood CEO Henk Hartong. “While separate operating companies, Sunny Delight and its Brynwood VII sister company, Harvest Hill Beverage Company (owner of the Juicy Juice, Hug and Daily’s brands), will explore ways to seek synergies that could benefit both companies.”

Brynwood, based in Greenwich, Connecticut, created Harvest Hill, in Stamford, Connecticut, in June 2014 to buy the Juicy Juice brand from Nestle USA Inc. The firm has been growing the company through M&A. In 2015, Harvest Hill paid $55 million to buy American Beverage Corp., the Rye Brook, New York owner of the Little Hug Fruit Barrels, Big Hug, Guzzler and Daily's brands. Both Sunny Delight and Harvest Hill are expected to make add-on acquisitions. Houlihan Lokey Capital advised Sunny Delight.

For more on Brynwood, see Life in the Lower Middle Market. 

Food and beverage industry