New Water Sells Custom Made Meals to Stellex

After a four-year hold, New Water Capital has sold Custom Made Meals to Stellex Capital Management.

In April 2017, New Water acquired sister companies Custom Made Meals, a manufacturer of oven-ready entrees and appetizers, and Custom Corned Beef, a manufacturer of raw and cooked meats (together CMM).

Today, CMM is a producer of branded and private label oven-ready, entrees and appetizers that are sold through retail grocery locations nationwide. The company’s meat products include raw and cooked corned beef; roast beef and pastrami; and specialty items such as chorizo, beef brisket, barbeque pork, and barbacoa. CMM, led by CEO Dale Easdon, was founded in 1977 and is based in Denver.

During its ownership term of CMM, New Water expanded the company’s capacity, streamlined its supply chain, and grew its customer base from approximately 6,000 grocery retail locations to more than 15,000 retailer locations.

“Our goal at New Water is to support and invest in businesses with enduring value propositions,” said Jason Neimark, a partner at New Water. “We are proud of CMM’s success, and we have every confidence the company will continue its remarkable growth trajectory and success under its new ownership.”

“As consumer demand for fresh, ready-to-cook foods has skyrocketed in recent years, the CMM team’s creative expertise, skilled management and established relationships within the industry have positioned the company, with New Water’s operational leadership and support, as a leading competitor in the U.S. marketplace,” said Mr. Easdon. “The entire CMM team is excited to be part of this next stage in the company’s success.”

“At Stellex, we look for opportunities to invest in businesses that are undergoing or facilitating transformation,” said Trey Lee, a principal at Stellex. “CMM is providing its retail customers products that meet growing consumer demand for convenient yet high-quality, fresh foods. At the same time, CMM is also providing its customers with both product development and innovation along with a service, which reduces the complexities of procurement, labor management, food safety, shelf life, and waste. We have witnessed the power of these trends within other food products, and CMM has the team, the scale and the new financial support of Stellex to continue paving the road in the fresh, ready-to-cook category.”

Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include manufacturing and service businesses within the automotive, aerospace, building products, consumer, defense, food, general industrial, and transportation industries. In September 2020, Stellex – founded in 2014 by Ray Whiteman and Michael Stewart – closed its second fund with total capital commitments of just more than $1.7 billion.

New Water invests in North America-based lower middle-market companies with revenues between $30 million and $300 million.  Sectors of interest include consumer products and industrial manufacturing and services. The firm was founded in September 2014 and is based in Boca Raton, Florida.

© 2021 Private Equity Professional | May 13, 2021