ORANGE COUNTY, CALIF. — Stir Foods and Pacifica Foods, a portfolio company of Chicago-based private equity firm Wind Point Partners, has acquired the salsa business of Sabra Dipping Co. The acquisition includes the Santa Barbara and Chachies brands, as well as the Sabra brand.
Financial terms of the transaction were not disclosed.
The companies said that the Santa Barbara and Chachies brands will continue to be produced at a facility in Oceanside, Calif. Meanwhile, the Sabra brand salsa will be phased out.
“I am delighted to welcome the Sabra salsa business and its employees to Stir-Pacifica,” said Milt Liu, chief executive officer of Stir-Pacifica. “In this new phase, we are confident that together we will be able to accelerate growth and create value for all our stakeholders.
“The combination of these two refrigerated salsa operations is highly complementary and will enable us to better serve our combined customer bases through enhanced R.&D. and new packaging formats. Additionally, the facility in Oceanside is well-invested, and its workforce has a strong food safety and quality culture. This is an excellent addition to Stir-Pacifica.”
“This investment will accelerate our ability to grow with our customers through more diversified manufacturing capabilities and continued investment in innovation.” — Joe Lawler, Wind Point Partners
Founded in 2000, Stir-Pacifica is a custom manufacturer of soups, sauces, dressings and fresh salsas for both retail and food service customers. The company operates four production facilities.
Tomer Harpaz, c.e.o. of Sabra, said the company was pleased that the salsa business was acquired by a highly regarded organization. With the sale, Sabra now will focus on growing its hummus business, he said. Sabra offers more than a dozen varieties of hummus, including items that are non-G.M.O., vegetarian, organic, gluten-free, kosher and vegan. Based in White Plains, N.Y., Sabra is a joint venture between PepsiCo, Inc. and Strauss Group.
Wind Point Partners, which acquired Stir-Pacifica in December 2017, said the acquisition of the Sabra salsa business fits squarely with the firm’s value creation plan.
“This investment will accelerate our ability to grow with our customers through more diversified manufacturing capabilities and continued investment in innovation,” said Joe Lawler, principal with Wind Point Partners.