Clayton Dubilier & Rice Buys US Snack Producer Shearer’s Foods
Clayton Dubilier & Rice has agreed to buy Shearer’s from the Ontario Teachers’ Pension Plan (OTPP) fund for an undisclosed sum. Earlier reports had speculated a buy-out deal for Shearer’s could be worth $3bn, reports Just Food. As part of the transaction, Ontario Teachers’ will exit its position in the Company.
Founded in the early 1900s, Shearer’s today is an award-winning supplier to some of the largest and most well-known retailers and consumer branded companies. The Company has an expansive manufacturing footprint and diversified offering that has enabled it to become a leading manufacturer of salty snacks and cookies and crackers products. Based in Massillon, Ohio, the Company is led by Executive Chairman Bill Nictakis and CEO Mark McNeil.
“CD&R shares our focus and commitment, and their track record of helping build stronger, more sustainable businesses makes the firm an ideal partner as we continue to drive our business forward,” said Nictakis. “At the same time, I would like to express my gratitude to the Ontario Teachers’ team. Under their more than a decade of ownership, we have successfully grown our footprint and significantly diversified our offerings to our valued customers.”
Echoing Nictakis’ sentiments, Mark McNeil added, “As Shearer’s enters a new phase of growth, we are excited to be joined by a team with the experience, expertise and resources to support our mission of producing high-quality, innovative and delicious snacks that we are proud to serve to our families, friends, customers and retailers.”
Ontario Teachers’ initially invested in Shearer’s in 2012 and became a significant majority owner in 2015. The Company has grown from five plants to 17 and has become one of the largest producers of private label and co-manufactured salty snacks in North America. In this time, Shearer’s has also invested in its plant network to strengthen its relationships with strategic blue-chip customers, while also diversifying its geographic and product mix.