LatAm beverage and food company Castillo Hermanos buys Harvest Hill

Harvest Hill is a portfolio company of Brynwood Partners, and was established in 2014 when Brynwood Partners acquired the Juicy Juice brand from Nestlé USA, Inc. Since then, its management team has created a portfolio of iconic beverage brands including Juicy Juice, SunnyD, Little Hugs, Fruit2O and Nutrament.

Harvest Hill also owns the adult beverage brands Daily's and SunnyD Vodka Seltzer, which are included in the transaction. The Harvest Hill sale represents the largest transaction in Brynwood Partners' 40-year history.

Harvest Hill operates six manufacturing facilities located across the US and its  products are sold through all major channels of distribution with expansive depth and breadth of account penetration with all major retailers in the US.

Castillo Hermanos is a family-owned company founded in 1886 and its brands include Gallo Beer, known as Famosa Beer in the US, and Del Frutal and the Raptor Energy Drink. It is also the leading cereal producer in Central America.

The acquisition of Harvest Hill by Castillo Hermanos significantly expands the latter’s US presence and provides a platform to grow its existing US business unit.

“We are delighted to announce the sale of Harvest Hill, though it is a bittersweet moment as it is sad to say goodbye to a Company and brands that have meant so much to Brynwood Partners and me personally,” said Henk Hartong III, chairman and CEO of Brynwood Partners. 

“The Harvest Hill sale will represent the largest transaction in Brynwood Partners’ 40-year history. We are grateful for the commitment from our limited partners and the confidence that they conveyed to us through the Harvest Hill investment period. Castillo Hermanos is a first-class company with a long family history and a passion for the beverage business.  We are confident that they will continue to invest in and grow the Harvest Hill business,” Hartong added.

Based in Greenwich, Connecticut, Brynwood Partners is an operationally focused private equity firm that has been making control investments in middle market companies based in North America since 1984. The firm targets non-core brands and companies operating in the consumer sector.

Brynwood Partners had teamed up previously with Centerview Capital in 2010 when it divested a Brynwood Partners V L.P. portfolio company, Richelieu Foods.

“We are grateful to Castillo Hermanos and know that they will be great stewards of the business,” said Ian MacTaggart, vice chairman of Brynwood Partners.  “We have had a long relationship with Centerview Capital.”

The deal is subject to customary closing conditions and receipt of regulatory approvals.

Law firm Holland & Knight advised Harvest Hill Beverage Company on the transaction, with a team led by partners Martin Clarke and Seth Milligan and associate Bianca Poehailos (M&A).

They were assisted by partner Gary Schoenbrun and associate Jiyeon Barta (tax); partner John Dierking and senior counsel Ryan Kocse (antitrust); partner Eric Rubin and associates Rachel Long and Burke Depuy (executive compensation and benefits); partners John Flaherty and David Valeck (finance); and partner Michael Newman (alcoholic beverages).