Mother Nature's Goodies Acquired by Teamshares

Transaction Details

Industry: Food Processing > Granola and Snacks
Buyer: Teamshares (www.teamshares.com), a provider of employee-ownership financing services for entrepreneurs across the United States
Seller (Target): Mother Nature's Goodies (www.mothernaturesgoodies.com), a manufacturer of granola and snacks based in Yucaipa, California

Mother Nature's Goodies, a granola manufacturer based in Yucaipa, California, was acquired by Teamshares, a provider of employee-ownership financing services offering liquidity to small entrepreneurs through buyouts.
Morgan & Westfield, a nationwide mergers and acquisitions advisory firm specializing in the food and beverage industry, represented the seller.

The Target/Seller

Mother Nature's Goodies is a specialty food manufacturing business based in Southern California. The company utilizes craft and small-batch manufacturing techniques to produce personalized granola formulas for wholesale and retail customers.

Mother Nature's customers include retailers, repackers, and clients who purchase the product in bulk for the foodservice and hospitality industries. They formulate customized granola recipes by modifying the ratio of different ingredients, working with specific ingredient combinations, and tailoring the nutritional elements of each mix.

The company has been family-owned and operated since 1971, working with clients mainly in the Los Angeles and Orange County area. They market retail products under their "Grandma Goodies" trade name and also provide products on a wholesale basis. Customers travel to the facility to purchase their customized retail products, and some of the most popular options are shipped in larger quantities via their online site across the United States.

Mother Nature's Goodies uses all-natural, non-GMO ingredients with only natural sugars. Their production line features a smaller, more agile manufacturing system to customize large or small-batch orders, which allows them to use ingredients other manufacturers may not.

The Buyer

Located in New York, Teamshares is a venture-capital-based provider of employee ownership financing services intended to offer liquidity to small entrepreneurs across the United States through buyouts. The company specializes in buying small businesses from retiring owners and helping them become employee-owned. All employees are retained and earn stock in the company, which continues to be independent, helping lenders, brokers, and owners to keep their brand's legacy and work culture intact.

The Industry

Rising awareness about health and fitness and interest in healthy snack products will likely be among the key factors boosting market growth. The high nutritional value of these products is also expected to augment their demand over the years to come.

The increase of consumer focus on nutritional content, such as high vitamins and proteins and low calories, has worked in favor of the market. The hectic lifestyles of consumers are expected to propel the market over the coming years. The growing popularity of sports and athletic activities, along with busy lifestyles, increasing health consciousness, and changing food preferences, is driving manufacturers to introduce products with new flavors and ingredients.

Customers are widely consuming dried fruits because they provide minerals, vitamins, phytonutrients, and fiber. The growing disposable income of consumers due to modernization and a widening base of working personnel is one of the primary growth stimulants for the market. Families in the mid-thirties to mid-forties have increased their spending on healthy snacks.

An upsurge in investments to develop innovative quality offerings and product branding initiatives undertaken by major players are anticipated to expand the market. Health consciousness among customers due to awareness campaigns launched by the government, non-government organizations, and companies are estimated to stir up the demand for healthy snacks over the coming years.

"Profits are reasonable, and the food market is moving toward good-tasting, simple foods with good perceived nutritional value. We take the personal approach to make a custom granola for our customers rather than force them into a specific mass-produced product that is not quite what they want or need." - David and Elizabeth Goude - Mother Nature's Goodies

Morgan & Westfield Inc.
300 Delaware Ave #210-710, Wilmington, Delaware 19801

The sale was represented by Jacob Orosz, president of Morgan & Westfield, an M&A firm specializing in the food and beverage industry.

Jacob founded Morgan & Westfield in 2008 and is the author of six books on M&A, including Food and Beverage M&A (875 pages), and host of the #1 podcast on mergers & acquisitions, M&A Talk, and host of the Food & Beverage Talk podcast. He has over 20 years of experience facilitating mergers, acquisitions, and sales; and has successfully participated in or managed the sale of over 300 privately held companies.

For additional information, please contact Morgan & Westfield, www.morganandwestfield.com, info@morganandwestfield.com