Lyons Magnus is a producer of fruit-based and beverage ingredients, with a product range that includes coffee flavoring syrups, smoothie fruit purees, and other items. The company's branded products, such as strawberry and caramel dessert toppings, are commonly found on supermarket shelves.

TrueLink Capital announced on Monday that it has completed the acquisition of flavor ingredients and beverage manufacturer Lyons Magnus. The financial terms of the transaction were not officially disclosed. When including the target company's debt, the total valuation of the deal is approximately $1 billion.

Transaction Details

Headquartered in California, USA, Lyons Magnus has a history dating back to 1852. Its product portfolio includes coffee syrups, smoothie bases, ice cream toppings, nutritional beverages, and various fruit purees. The company serves foodservice clients, including chain restaurants and major coffee shops.

The Los Angeles-based private equity firm TrueLink acquired the company from private equity firm Paine Schwartz Partners. Paine Schwartz originally acquired Lyons Magnus in 2017. Under its ownership, Lyons Magnus pursued several acquisitions of smaller industry assets, including parts of Hormel Foods' business, expanding its commercial ingredients operations and extending its customer base into the healthcare sector.

Since 2017, Lyons Magnus has nearly doubled its annual revenue, which now exceeds $1 billion.

Industry Context

TrueLink is a middle-market private equity firm focused on the business services and industrial sectors. The firm completed a $2 billion fundraising for its latest fund in March of this year.

Paine Schwartz Partners has a long-term investment strategy centered on the sustainable food supply chain. Its investment portfolio also includes companies like cold-pressed juice maker Suja Life and plant-based dough producer Urban Farmer.

The sale of Lyons Magnus is one of several recent mergers and acquisitions in the food ingredients industry. In May of this year, International Flavors & Fragrances (IFF) finalized an agreement to sell its food ingredients business to private equity giant CVC Capital Partners, with the business valued at over $4 billion including debt. The following month, US food and beverage ingredients company Ingredion acquired its UK peer Tate & Lyle for $3.6 billion.