NEW YORK AND TORONTO — Clayton Dubilier & Rice (CD&R), a private investment firm, announced that it has entered into a definitive agreement for funds it manages to acquire Shearer’s Foods from global investor Ontario Teachers’ Pension Plan Board. Shearer’s has an expansive manufacturing footprint and diversified offering that has enabled it to become a leading manufacturer of salty snacks, cookies and cracker products.
“We have deep admiration and respect for Shearer’s, a leading business that shares our core values in a sector and operating model we know and understand well,” said John Compton, operating partner of CD&R and former president of PepsiCo and CEO of PepsiCo North America. “We are thrilled to be partnering with Bill and Mark to build on Shearer’s history of success in serving great-tasting snacks.”
As part of the transaction, Ontario Teachers’ will step down from its position as majority shareholder in the company. The terms of the transaction were not disclosed.
“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 Bill Nictakis, executive chair of Shearer’s Foods. “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.”
Ontario Teachers’ initially invested in Shearer’s in 2012 and became a significant majority owner of the company in 2015. Growing to one of the largest producers of private-label and co-manufactured salty snacks in the US, Shearer’s has invested in a network of 17 manufacturing facilities across the US and Canada, allowing it to diversify its geographic and product mix as well as strengthen relationships with strategic blue-chip partners.
“Over the past decade, we have been proud to partner with the Shearer’s management team as it established itself as a market leader in North America for private label and contract manufactured salty snacks, cookies and crackers,” said Raymond Shiu, managing director, private capital at Ontario Teachers’. “Shearer’s has achieved this position by consistently delivering high-quality and innovative products while expanding its market presence.”
