Better-for-you-focused private equity firm North Castle Partners is gulping down a majority stake in Sprout Organic Foods Inc., which makes baby food and other products.
Sprout, headquartered in Duluth, Georgia, also develops special pouches for its food products, which include vegetables, fruits, grains and proteins. Terms of the deal were not disclosed.
The transaction falls in line with consumer and dealmaker interest in healthier food companies.
Greenwich, Connecticut-based North Castle focuses on investments in the healthy, active and sustainable living markets. The firm's previous portfolio companies include Naked Juice, Bora Bora Organic Foods and Flatout Flatbreads, which North Castle sold to T. Marzetti Co. in March. The firm currently owns weight-loss company Jenny Craig, which it bought in 2013.
The firm has appointed Rick Klauser as Sprout's new CEO. Klauser was formerly of baby-food brand Gerber, which is part of Nestle (VTX: NESN).
BellMark Partners was Sprout's financial adviser for the deal.
The last few years have produced a bunch of M&A deals in the healthy food space. In June, Centre Lane Partners LLC agreed to buy Saladworks, a bankrupt salad chain, for $17 million. Before that, Permira agreed to add snack maker PopCorners. For more on the trend, see Snack Time.