Offering finances acquisition of one of the country’s leading contract food manufacturers by Goldman Sachs PIA and Vestar Capital Partners; Milbank’s second major high-yield acquisition financing in the past month, following $750 million offering by Signode Industrial Group
In its second large private equity high yield financing in the past month, Milbank, Tweed, Hadley & McCloy advised the initial purchasers in a $300 million high-yield notes offering, the proceeds of which were used to finance the acquisition of Hearthside Food Solutions by affiliates of Goldman Sachs PIA and Vestar Capital Partners. The notes offering closed on May 13, 2014 and the acquisition closed on June 2, 2014.
Goldman Sachs PIA and Vestar Capital Partners agreed in March to acquire Illinois-based Hearthside, one of the leading contract food manufacturers in the U.S. The company operates 20 factories in eight states, producing grain-based and snack foods for approximately 100 brands, totaling some 1,000 SKUs.
Milbank advised the initial purchasers led by Goldman Sachs and Barclays, along with Deutsche Bank Securities, Fifth Third Securities, Key Banc Capital Markets and SMBC Nikko.
The transaction raises the value of high-yield buyout financings by Milbank in the past month to more than $1 billion. In early May, the firm represented initial purchasers including Goldman and J.P. Morgan in the $750 million offering by Signode Industrial Group to finance its acquisition by The Carlyle Group.
Milbank’s deal team was led by Global Securities partner Rod Miller (who also handled the Signode transaction), Global Leveraged Finance partner Marc Hanrahan, Tax partner Andrew Walker, along with associates Ben Miles, Jessica Cunningham, Meredith Hines, Gladis Sanchez, Ben Sayagh and Erika Hauser.
