ACON Investments announced the acquisition of a controlling stake in YumEarth, a fast-growing organic confectionery brand known for allergy-friendly candy made with clean and simple ingredients. Financial terms of the transaction were not disclosed.
The deal includes Fini as a strategic industry partner, which will hold an ownership stake in the business.
Founded in 2007, YumEarth makes better-for-you confectionery products using organic and non-GMO ingredients.
The company’s products contain no artificial dyes or high-fructose corn syrup and are gluten-free and free from the top nine allergens.
YumEarth’s portfolio includes chewy and gummy candy, lollipops, fruit snacks, sour candy, and other products.
The brand is sold online and through approximately 30,000 retail doors, including Target, Whole Foods, Walmart, Kroger, and Sprouts.
The transaction marks the first investment of the ACON Evolution Fund, which is led by ACON’s next generation of leadership, Anjali Jolly and Suma Kulkarni.
The fund focuses on value-oriented investment opportunities across the consumer and industrial sectors while providing investors with access to a programmatic co-investment offering.
ACON said the YumEarth deal represents its sixth partnership formed to invest in the U.S. middle market.
Fini is a global confectionery company founded in 1971 and headquartered in Molina de Segura, Spain.
The company distributes products to more than 100 countries across five continents and has experience across gelatin, marshmallow, and licorice candies.
ACON and Fini plan to use their combined expertise to support YumEarth’s growth strategy, expand the brand’s reach, and strengthen its innovation pipeline.
Financing for the acquisition was led by Truist Bank.
Santander served as financial advisor to ACON.
Winston Taylor and Hogan Lovells served as transaction counsel and fund counsel, respectively, to ACON.
TM Capital and Jones Day served as financial advisor and transaction counsel, respectively, to YumEarth.
Deloitte served as financial advisor to Fini, while Blank Rome and Garrigues served as legal advisors in connection with the transaction.
ACON Investments is a Washington, D.C.-based international private equity firm that invests across the U.S., Latin America, and Europe.
The firm has managed $7.3 billion in assets since inception and has a 30-year track record.
KEY QUOTES:
“Our partnership with ACON and Fini represents an exciting new chapter for YumEarth. Since its founding, YumEarth has been guided by a simple belief: families should not have to choose between candy that tastes great and ingredients they can trust. With ACON’s experience supporting consumer brands and Fini’s deep confectionery expertise, we are well-positioned to expand our reach, strengthen our innovation pipeline and bring YumEarth to even more families.”
Steve Van Tassel, CEO of YumEarth
“We are thrilled to partner with Steve and the YumEarth team, who have built a differentiated brand with a loyal consumer following at the intersection of several powerful consumer trends. We believe our partnership with Fini will provide valuable resources to help unlock the Company’s full potential.”
Anjali Jolly, Managing Partner at ACON
“YumEarth is an exceptional brand with a strong purpose, high-quality products and meaningful growth potential. We are excited to collaborate with ACON and YumEarth’s talented management team to support the Company’s next phase of expansion.”
Manolo Sánchez, CEO of Fini
