J. Michael "Mike" Smith to continue as CEO
SunTx Capital Partners ("SunTx") announced today it has acquired a majority interest in Carolina Beer & Beverage ("CBB"), a leading independent contract beverage manufacturer, based in Mooresville, N.C. Financial terms of the transaction were not disclosed.
Founded in 1997 by J. Michael Smith and John Stritch, CBB got its start when the duo acquired the rights and formula to the Carolina Blonde and Cottonwood Ales beer brands. Today, CBB has a reputation as a world-class co-packing producer for numerous national and international beverage brands. With an emphasis on co-packing specialty-sized cans, specialty plastic bottles and glass bottles, the company's customers are many of the "who's who" in the beverage world, including makers of well known malt beverages, distilled spirits, and energy drinks. Together, these represent the highest-growth segment of the functional beverage category, among other ready-to-drink beverages produced at the Mooresville Facility
Mike Smith will continue to serve as CEO of the Company. In addition to Mr. Smith, the Company's senior management team has more than 170 years of experience in the beverage industry, and a proven track record of managing growth while maintaining high quality standards.
"We are very excited about this partnership with SunTx Capital, which has a long track record of growing businesses, while building value and creating attractive opportunities for employees," said Mr. Smith. "With SunTx as our strategic partner, we feel that we can take advantage of the numerous opportunities to grow. We believe that our existing customer and supplier relationships, efficient manufacturing capabilities and experienced management team will enable us to continue our superior historical performance and margin growth."
Ned Fleming, Managing Partner of SunTx Capital, said, "We are very excited about the future of CBB and look forward to working with Mike Smith and his experienced management team. The functional beverage industry is the highest-growth segment of the beverage industry and we believe CBB is well positioned, through its attractive portfolio of strong customer relationships and continued focus on operational excellence, to capture increased market share and recognize substantial upside."
About Carolina Beer & Beverage:
Carolina Beer & Beverage was founded in 1997 by CEO, J. Michael Smith and President John Stritch. The company is the creator and maker of a dozen, high-quality, draft beers sold and distributed in five mid-Atlantic states under the Carolina Blonde and Cottonwood Ales brands. The company has a reputation as a world-class co-packing producer for numerous national and international beverage brands, with an emphasis on co-packing specialty-sized cans, specialty plastic bottles and glass bottles. The company's state-of-the-art facility in Mooresville, N.C. has a current capacity of 35 plus million cases annually, including the latest in high-speed can filling, batching, tunnel pasteurization and laboratory technologies.
About SunTx Capital Partners:
SunTx Capital Partners is a private equity investment partnership that works closely with management teams to buy and build middle market companies. Founded in 2000, and headquartered in Dallas, SunTx has approximately $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds.
Contacts:
Contact for Carolina Beer & Beverage:
Carolina Beer &
Beverage
Shannon Stritch/Harry Barto
704-799-2337
or
Contact
for SunTx Capital Partners:
Kekst and Company
Melissa
Sheer/Paige Gruman
212-521-4800
