Private equity firm Creo Capital Partners LLC is actively pursuing acquisitions in the organic space, says partner Rob Holland. The Los Angeles-based sponsor focuses on all types of food service, including logistics and retail businesses. In 2013, Creo acquired ZD Bottling LLC, a producer and wholesaler of salsas, through its portfolio company Flagship Food Group LLC. That took place on the heels of Creo's acquisition of Atlantic Foods Group Ltd., a distributor of various food products for retail and restaurant customers.
Moving forward, Holland expects other buyers to continue focusing on acquiring companies that source and sell organic foods, as well as products that are non-GMO (genetically-modified organism). Recent natural food deals include the Hillshire Brands Co.'s (NYSE: HSH) April deal for Van's Natural Foods, a maker of better-for-you foods, and TPG Capital's $394 million deal for the parent company of Gelson's markets, which specialize in natural and organic food.