Fredericks Michael & Co. acted as exclusive financial advisor to Huhtamäki Oyj, a leading producer of packaging products for food and drinks, on sale of its intellectual property, trademarks and associated licensing agreements, and royalties for a portfolio of chocolate and sugar confectionery brands that include Jolly Rancher, Payday, Whoppers, Heath, Milk Duds, Sixlets, Good & Plenty, Zero, Chuckles, and Good & Fruity to Highlander Partners, L.P., a leading middle-market private investment firm.
The portfolio was associated with Huhtamaki’s exit from the confectionary business in 1996, when Huhtamaki sold its confectionary sales and manufacturing to The Hershey Company and entered into a license and royalty agreement with Hershey. The portfolio of ten iconic brands acquired in this transaction will continue to be licensed to Hershey under the same terms and conditions. The brands are the subject of hundreds of registered trademarks around the world and hold a leading market position in the U.S. and internationally. These confectionery products have a strong consumer following and are available at most U.S. brick-and-mortar and online retailers.
In connection with this transaction, Alex Guiva, Partner at Highlander, stated, “Because Highlander has its own proprietary capital, we can be flexible, creative, and non-bureaucratic when structuring and executing acquisitions, as demonstrated by this transaction. These are exceptional brands that have been well known to everyone since childhood. Everyone has a favorite! Many generations grew up loving their taste and will continue to enjoy them. We are proud and excited to be involved with these iconic brands and view them as a great investment that uniquely fits Highlander’s long-term investment strategy.” Jeff L. Hull, President, and Managing Partner of Highlander, added, “Highlander made three investments in the confection space in the last two years, including this one. We remain fully committed to this category and we also have a strong focus on investing in the food and beverage categories, both consumer products and ingredients, having closed more than twenty transactions in those industries in the last ten years. In addition, with the acquisition of the above-mentioned trademarks, we will continue the strategy of evaluating and acquiring valuable intellectual property, brands, trademarks and related royalty assets in food, beverage, and other industries.”
FM&Co.’s advisory services to Huhtamaki included identifying and contacting Highlander, valuing, structuring, and negotiating the terms and conditions of the agreement.
About Huhtamäki Oyj
With 76 manufacturing units and 24 sales offices in 34 countries, Huhtamaki is a global food and drinks packaging producer. Its products include paper and plastic disposable tableware, such as cups, plates and containers for quick service restaurants, coffee shops, retail stores, caterers, and vending operators. Huhtamaki provides coated paper cups as well as flexible packaging and labels for food and drink, pet food, pharmaceuticals, household, and hygiene brands. Huhtamaki also makes egg cartons and trays, fruit trays, and cup carriers. For more information, visit www.huhtamaki.com
About Highlander Partners, L.P.
Highlander is a Dallas-based private investment firm with over US$ 2.0 billion of assets under management. The firm focuses on making investments in businesses in targeted industries in which the principals of the firm have significant operating and investing experience, including basic manufacturing, food, chemicals, building materials, consumer products, and others. For more information, visit www.highlander-partners.com
