Brynwood Partners VIIL.P. has acquired Cold Spring Brewing Co. from its current owner, the Lenore family. Terms and conditions of the transaction were not disclosed. Brynwood Partners, founded in 1984 and based in Greenwich, Conn., is an operationally-focused private equity firm that makes control investments in North American-based lower middle market companies in the consumer sector.
Located in Cold Spring, Minn., Cold Spring manufactures both non-alcoholic and alcoholic beverages and beer for other companies’ proprietary brands and retailers’ private labels. Cold Spring also brews beer under its own brand, Third Street Brewhouse, for distribution locally in Minnesota and Wisconsin.
Founded in 1874, Cold Spring is one of the oldest beverage manufacturing plants in the United States and also one of the most successful with more than $60 million in net sales and a staff of about 350 people.
“The well-run facilities and exciting growth plans for the company represent a great investment opportunity for Brynwood Partners,” said said Henk Hartong III, chairman and CEO of Brynwood Partners. “While Cold Spring will be operated as a standalone company, and we believe it will benefit greatly from the scale and national distribution and manufacturing foot print of Brynwood Partners’ Harvest Hill Beverage Company investment. We look forward to working collaboratively with Cold Spring’s management team to grow the business.”
“On behalf of Brynwood Partners, I would like to express my sincere gratitude to the Lenore family for working with us on this transaction,” said Ian MacTaggart, president and COO of Brynwood Partners. “This marks Brynwood VII’s sixth investment in the beverage sector and is a significant investment for our firm. We look forward to supporting Cold Spring’s loyal employees and growing its operations in Cold Spring, Minn., where it has resided for 143 year and plays such an important role in the community.”
Brynwood VII did not retain an investment banking adviser but was represented by Holland & Knight LLP on legal matters. Cold Spring retained Cascadia Capital LLC as its investment banking adviser and was represented by Stinson Leonard Street LLP on legal matters.