Truelink Capital has completed its acquisition of Lyons Magnus from Paine Schwartz Partners. Financial terms of the transaction were not disclosed.
Lyons Magnus develops and manufactures specialty ingredients, beverage products and nutrition solutions for business customers. The company serves coffeehouses, quick-service restaurant chains, foodservice operators and healthcare organizations.
Founded in 1852 and headquartered in Fresno, California, Lyons Magnus offers syrups, sauces, beverage bases, concentrates and specialty healthcare nutrition products. Its customers include several large food and beverage operators.
The company combines product formulation, pilot plant capabilities and commercialization services. This integrated model allows Lyons Magnus to help customers develop new products and move them from early concepts into large-scale manufacturing.
Lyons Magnus operates four manufacturing facilities and two company-managed distribution hubs. This network supports customers across the away-from-home beverage and nutrition markets.
Away-from-home products include beverages and food items consumed in restaurants, coffee shops, healthcare facilities and other locations outside the home. Demand in this category is being supported by continued product innovation and consumer interest in specialty drinks and nutrition-focused offerings.
Truelink plans to support Lyons Magnus through organic growth initiatives and strategic acquisitions. The private equity firm sees opportunities to expand the company’s commercial capabilities, product portfolio and market reach.
Healthcare and nutrition products are expected to remain an important growth area for Lyons Magnus. The company develops specialized products for customers requiring nutritional formulations tailored to medical, institutional or wellness-focused applications.
CEO Jim Davis and the existing Lyons Magnus management team will continue leading the business. Truelink said it intends to build on the company’s operating history, customer relationships and product development capabilities.
The acquisition represents the second platform investment completed by Truelink Capital’s second fund. A platform investment typically serves as a foundation for future growth, including additional acquisitions of complementary businesses.
Truelink focuses on companies operating across the industrial and business services sectors. The Los Angeles-based firm manages more than $4 billion in assets and works with management teams, founders and corporate sellers.
Paine Schwartz Partners previously owned Lyons Magnus as part of its food and agribusiness investment strategy. The firm manages approximately $6.5 billion and focuses on companies connected to food chain productivity, sustainability, health and wellness.
Stifel served as financial adviser to Truelink Capital. Evercore and William Blair acted as financial advisers to Lyons Magnus.
KEY QUOTES:
“Lyons is a well-established business with a market-leading position in the attractive and growing specialty ingredients category. The company is well positioned to benefit from the increasing importance of beverage innovation in the away-from-home category and growing demand for healthcare and nutrition solutions, and our strategic intent will be to drive Lyons’ growth via both commercial organic initiatives and the execution of strategic M&A add-ons.”
“We are excited to partner with CEO Jim Davis and the rest of the Lyons team to build on the Company’s strong foundation and next phase of growth.”
Todd Golditch, Co-Founder and Managing Partner of Truelink Capital
“We are thrilled to be partnering with Truelink Capital as we enter this exciting next chapter for Lyons Magnus. Truelink shares our commitment to innovation, operational excellence, and delivering best-in-class products to our customers.”
“With their support and resources, we are well-positioned to capitalize on the significant momentum in our end markets and continue building on the strong foundation we have established over the past century.”
Jim Davis, Chief Executive Officer of Lyons Magnus
