Greenwich, Connecticut-based buyout firm North Castle Partners invested into Flatout, Inc. in a recapitalization transaction, with additional investment capital provided by Glencoe Capital. Financial terms of the deal were not disclosed.

Managing directors Chip Baird and Lou Marinaccio worked on the firm for North Castle. The private equity firm is currently investing out of its fourth fund, of which North Castle has reportedly raised $300 million. In speaking with Mergers & Acquisitions, Marinaccio said the firm will look for opportunities to augment the current husband and wife management team. Stacey Marsh and Mike Marsh, who founded the Saline, Michigan-based flatbreads manufacturer in 1990, will remain at the company as chief executive and senior vice-president of operations respectively. They will remain "significant" owners of the company.

Glencoe Capital participated as a secondary investor using capital from its Michigan Opportunities Fund. Managing director Jason Duzan led the transaction for Glencoe. The Chicago, Illinois-based private equity firm acquired a related business, ACE Bakery, in April 2008.

Marinaccio said add-on acquisitions “are not part of the current strategy” of Flatout. In discussing trends facing the sector, he noted, “There continues to be a trend of consumers looking for health and nutritious foods, but will no longer tolerate poor taste.”

North Castle has remained a active investor in the consumer and consumer and personal care sectors. In February 2009, the private equity firm completed a serried of add-on acquisitions to its natural products portfolio company gloProfessional, creating a new entity, Mineral Fusion Natural Brands LLC. In September 2007, North Castle acquired the New York-based weight loss products company Atkins Nutritional Holdings, Inc.

Chicago, Illinois-based Lincoln International advised Flatout on the transaction, while New York City-based Morrison Cohen served as legal counsel to North Castle.

Calls placed to North Castle and Glencoe Capital were not returned by press time on Friday. Lincoln International declined to comment of the transaction.