Stratus Appoints Bill Hayden as Chief Executive Officer
Bill Hayden Appointed as Next CEO; Tim Eippert Named Chairman of the Board
CLEVELAND, OH – November 1, 2024 – Stratus, a leader in facilities services and brand implementation solutions, today announced a strategic leadership transition designed to drive the company’s next phase of growth and innovation. Experienced facilities services executive Bill Hayden has been named Chief Executive Officer, and Tim Eippert has been appointed Chairman of the Board.
Mr. Eippert has led Stratus since 1994 when he purchased MC Sign, a small sign company in Ashtabula, OH. Over the next 30 years, Mr. Eippert guided the organization through significant milestones including private equity ownership, numerous growth acquisitions, and the addition of a wide array of service offerings. Under his leadership, the company rebranded to Stratus in 2020 and has solidified its position as a leading facilities services and brand implementation company.
As Chairman, Mr. Eippert will support Mr. Hayden and the team’s collective strategic vision. “This transition is an exciting new chapter for both me and Stratus as I reflect upon our humble beginnings and look forward to the future. I am excited to continue our commitment to excellence while supporting Bill in driving Stratus’ vision forward,” said Mr. Eippert.
Mr. Hayden was previously the CEO of facilitysource, which he sold to CBRE in 2018. Under his leadership, facilitysource evolved from a software and helpdesk platform supporting retail store maintenance to a fully integrated facility management solution which helped over 50,000 locations execute billions of annual spend through a service partner marketplace. Most recently, he served as the President of Enterprise Global Services within CBRE’s Global Workplace Solutions, overseeing strategy and execution across its retail facilities and project management offerings, lease administration services, smart buildings, and sustainability solutions. With a proven track record of growth and a wide area of expertise, Mr. Hayden is well-positioned to lead Stratus into its next chapter. “I am not only excited to accept the position of CEO at Stratus, but also look forward to working with Tim and the team to accelerate our growth and deliver even greater value to our customers and partners,” said Mr. Hayden.
360training Acquires Compliance Training Online (CTO)
AUSTIN, Texas, September 5, 2024 — 360training.com, Inc. (360training), a leading provider of online regulated environmental health and safety training, today announced that it has acquired Compliance Training Online (CTO), a prominent online training provider in the industry. This strategic acquisition will significantly enhance 360training's portfolio, offering expanded resources and comprehensive training solutions to clients worldwide.
"We are thrilled to welcome Compliance Training Online to the 360training family," said Tom Anderson, CEO of 360training. CTO's dedication to providing high-quality compliance training perfectly aligns with our mission to offer the best online training and certification solutions. This acquisition allows us to enhance our environmental safety and OSHA content library and further support our customers in meeting their compliance and certification needs."
CTO has built a strong reputation for delivering high-quality compliance training courses that meet regulatory requirements across various sectors, including workplace safety, environmental compliance, transportation, and human resources. By integrating CTO's extensive course library and expertise, 360training will broaden its ability to serve industries requiring rigorous compliance adherence, thereby delivering unparalleled value to its clients.
"Clients of both companies will benefit from a seamless transition, with continuous access to the high-quality training programs they have come to trust," said Samantha Montalbano, Chief Operating Officer of 360training. "Existing customers of CTO can expect enhanced support and expanded training options as part of the 360training family."
The acquisition of CTO underscores 360training's continuous commitment to deliver best-in-class environmental health and safety training quality and innovation throughoutin the elearning space. CTO's advanced training modules and regulatory expertise will be integrated with 360training's state-of-the-art learning platform, offering an improved user experience and more comprehensive training solutions.
About Compliance Training Online
Since 2008, Compliance Training Online (CTO) has been dedicated to keeping employees safe and companies compliant. They offer easy-to-use, high-quality, and low-cost online training courses covering a wide range of compliance areas, including Cal/OSHA, Canada OHS, DOT HAZMAT, EEOC, EPA, HAZWOPER, HIPAA, IATA, IMO, MSHA, and OSHA safety standards and regulations. With over 31,600 companies, government agencies, and universities having utilized CTO's courses, their experience in online compliance training is unmatched.
About 360training
Established in 1997, 360training.com, Inc. is a trusted leader specializing in comprehensive online training solutions for individuals and businesses across various industries, including financial services, real estate, healthcare, and environmental health and safety. With innovative technology and a commitment to quality education, they offer accredited courses fostering safe and healthy communities. Having delivered over 11 million training plans across multiple brands, including AgentCampus, VanEd, OSHAcampus, OSHA.com, Hard Hat Training, AdvanceOnline, ACLS Medical Training, American Resuscitation Council, HIPAA Exams, Mortgage Educators and Compliance (MEC), TIPS, and Learn2Serve, 360training remains dedicated to expanding its offerings. As part of this commitment, the company continues to seek acquisition opportunities that build synergies and enhance value for its customers. Please visit www.360training.com or our social media accounts on Facebook, Twitter, and LinkedIn to learn more.
Circana to Acquire NCSolutions and Nielsen’s Marketing Mix Modeling Business
CHICAGO and NEW YORK — August 26, 2024 — Circana™, a leading advisor on the complexity of consumer behavior, today announced it has entered into definitive agreements to acquire NCSolutions (NCS), the joint venture between Nielsen and Catalina that improves advertising effectiveness, and Nielsen’s Marketing Mix Modeling (MMM) business.
With these two acquisitions, Circana will expand its media measurement capabilities while also increasing its marketing mix modeling and unified measurement solutions and footprint. As a result, clients of all three organizations will gain broader access to audience targeting, media measurement, in-flight optimization, and clean room solutions. Additionally, this combination will increase efficiency and offer better products and services to fuel clients’ growth via more targeted and impactful advertising.
“We are excited to welcome NCSolutions and Nielsen’s Marketing Mix Modeling business to Circana to expand and enhance our media capabilities for our clients,” said Kirk Perry, president and chief executive officer of Circana. “Both businesses have incredible expertise, solutions, and clients that, when combined with Circana’s data and technology assets, will fuel clients’ growth.”
“NCSolutions and Nielsen’s Marketing Mix Modeling are strong businesses that deliver spectacular value for clients,” said Karthik Rao, chief executive officer of Nielsen. “As Nielsen focuses on expanding its leadership position in audience measurement and content data, we’re thrilled that the tremendous leadership and passionate teams at NCS and MMM can continue to accelerate their growth through synergies within Circana.”
Both businesses eventually will be integrated into Circana’s Media team. Circana’s Media team works with advertisers and their agencies to plan, target, activate, measure, and optimize media spend. Its media solutions portfolio is built on a robust enterprise technology platform, actionable CPG and general merchandise shopper, sales, and causal data sets, and advanced analytics. The transactions are expected to close during the fourth quarter of 2024, subject to regulatory approvals and the completion of any required information and consultation obligations, including any works councils’ processes.
Vestar on the hunt for add-ons and expansion after Roland Foods recapitalization
Vestar Capital Partners' quest to make Roland Foods ripe for an exit included a recapitalization of the New York-based specialty importer earlier this summer that will give it flexibility to execute its growth plans, including acquisitions in core or adjacent product categories, Ken O'Keefe, Vestar managing director and chief operating officer, told PE Hub.
Roland is a global brand and specialty foods importer and supplier. The majority of its customers are foodservice distributors, with some specialty retailers and restaurants. The company sources over 2,500 products that are imported from 40 countries and 350 suppliers, including roasted peppers, artichokes, balsamic vinegars, olives, quinoa and tahini.
Roland's capital structure was expiring and its flexibility to execute on its growth objectives was limited, said O'Keefe, who is a member of Roland's board. A recapitalization aligned with Roland's growth plans.
O'Keefe said Roland is looking to expand its capabilities through acquisitions in core or adjacent product categories that exhibit high growth characteristics, defensible margins, brand appeal and are asset-light, and can also benefit from Roland's platform and infrastructure. Roland is also looking to expand to high-growth menu offerings that it does not presently offer. This includes Southeast Asian, Latin American, Middle Eastern and African products. Geographically, Roland could also look to expand to Canada.
Eyeing growth
The firm also sees an opportunity to make even more add-ons. "We have a robust pipeline of potential acquisition targets which supports our overall growth strategy and value proposition for our customers," O'Keefe said. "I would be disappointed if we did not make multiple acquisitions over the coming years."
Roland expanded its product offering with two add-on acquisitions during the last five years. The company moved into the sweet food category with the acquisition of Albert Uster Imports (AUi) in 2019. AUi is a Gaithersburg, Maryland-headquartered importer and distributor of pastry, bakery and confectionary foods. In 2023, Roland added ifiGOURMET, a Gurnee, Illinois-based importer of gourmet dessert products and ingredients. Vestar considers it a complementary business to AUi.
Vestar acquired Roland in 2013. In 2017, Harvest Partners made a $125 million recapitalization investment in Roland and became a minority stakeholder. Harvest was refinanced out of Roland along with other debt providers with the closing of the recapitalization on July 31.
"We were fortunate to have a strong group of supportive financing sources who have done business with Roland for an extended period," O'Keefe added. "As a result, we were able to secure a highly attractive financing package which supports Roland's growth objectives - including a deferred draw term loan to facilitate acquisitions. Vestar and co-investors also contributed a significant amount of equity."
Vestar declined to share who the co-investors were in Roland.
Path to an exit
Vestar contemplated an exit in 2019, according to O'Keefe. However, the pandemic and its impact on Roland caused the firm to prioritize the business' performance. "During this time, we, along with Roland's management team, identified significant growth opportunities to increase value which we determined we could not realize without a recapitalization," he added.
Currently, there are no plans for an exit. But the recapitalization and Vestar's plans for future add-ons could better position the firm for an exit down the road.
"We believe Roland's business model, management team plus historical and future growth prospects will be attractive for many types of investors in the future including other private equity sponsors and strategic buyers," O'Keefe said.
Based in New York, Vestar is a middle market private equity firm with a focus on the sectors of consumer, business and technology services, and healthcare. Since it was founded in 1988, Vestar funds have invested over $12 billion in 94 companies with a total value of approximately $61 billion as of August.
Accanto Health Appoints Dr. Lynn Mason to its Board of Directors
July 19, 2024 – St. Paul., MN – Accanto Health, a national leader in eating disorder specialty care and behavioral health services encompassing The Emily Program and Gather Behavioral Health, today announced the appointment of veteran healthcare executive Dr. Lynn Mason to their Board of Directors.
“With decades of leadership across multi-site and multi-state healthcare services organizations, Lynn brings deep experience with market growth, new service development, and increasing access to care for those in need,” said CEO Dr. Tom Britton. “This broad expertise will be key as we continue to drive growth and expand access to eating disorders care that saves and transforms lives. With nearly 30 million people experiencing an eating disorder in their lifetime, accessible, convenient, and comprehensive care is critical to recovery.”
Currently the CEO of IVI RMA America, a leading integrated infertility network, Mason has also led Broadstep Behavioral Health as President & CEO, and held senior roles at DaVita HealthCare Partners and DaVitaRx, ChenMed Primary Care, Care Services, and United Allergy Services. Mason holds a doctorate in Healthcare Administration from Virginia University, an MBA from Stanford University, and a BSBA in Finance & Accounting from Washington University in St. Louis.
“Lynn’s appointment underscores our ongoing focus on aligning the expertise and qualifications of our directors with Accanto’s strategic growth opportunities in eating disorders and behavioral health treatment,” said Chris Durbin, Accanto board chair. “With her background in expansion of access to care, market growth, and new service development, coupled with her devotion to continuous improvement of healthcare and the well-being of consumers, Lynn brings a fresh perspective and valuable experience to the Accanto Board.”
“We live in a time where eating disorder and other behavioral health challenges appear to be at an all-time high. Fortunately, we also live in a time when a light has been shown on these challenges, and there are dedicated people working to eliminate the stigma and create solutions,” said Mason. “I am proud to lend service to an organization like Accanto with likeminded leaders, teammates and board members who desire a better world for those who need treatment and support.”
About Accanto Health
Accanto Health, based in St. Paul, Minnesota, is a national healthcare company specializing in eating disorders and other mental health conditions. The company includes leading eating disorder treatment provider, The Emily Program, and new general mental health provider, Gather Behavioral Health. With 21 locations across 8 states and beyond through virtual services, Accanto Health programs provide exceptional, individualized care for children, adolescents, and adults across the full continuum of behavioral health care in a gender-diverse and inclusive environment. If you or someone you know is struggling, call 888-364-5977 or visit accanto.com.
Ferrero-related Company to Acquire Nonni’s Bakery
WEXFORD, Pa., July 24, 2024 – Nonni’s Bakery (or the “Company”), a leading maker of artisanal biscotti type cookies and related snacks, announced today that CTH Invest SA, a Ferrero-related company, has agreed to acquire the Company from Vestar Capital Partners, a leading U.S. middle-market private equity firm. Terms of the transaction were not disclosed.
Founded in 1988, Nonni’s Bakery manufactures premium artisanal biscotti and baked goods specializing in indulgent chocolate and inclusions-enhanced biscotti and “Cantuccini-type” cookies. In addition to its signature biscotti, Nonni’s Bakery’s portfolio includes brands such as Nonni’s THINaddictives, Nonni’s Bites, La Dolce Vita, and its recently launched Nonni’s Snackers. Nonni’s Bakery has leveraged its premium biscotti expertise rooted in its Italian heritage to become a leading biscotti company in the U.S. Based in Wexford, Pennsylvania, the Company operates four manufacturing plants and has approximately 350 employees.
“The coming together of Nonni’s Bakery with the Ferrero extended family returns Nonni’s to its Italian roots and plants our great brands into the most fertile soil for continued growth and development,” said Mark Kleinman, CEO of Nonni’s.
The planned acquisition would strengthen the Ferrero presence in North America and continue its growth in the sweet-packaged food industry globally.
Houlihan Lokey served as financial advisor and Latham & Watkins LLP served as legal advisor to Nonni’s Bakery and Vestar Capital Partners.
About Nonni's Bakery
Nonni's Bakery is the artisan bakery for premium snack lovers, serving up a variety of high-quality baked goods that range from indulgent biscotti to better-for-you crisps. Nonni's Bakery delivers distinctive, satisfying textures and flavors worth savoring, baked from contemporary Italian recipes that celebrate the Italian spirit of eating and living well. For more information, please visit nonnis.com.
About CTH Invest SA
CTH Invest SA is a Ferrero-related Belgian Holding Company that owns iconic brands including Michel et Augustin in France, Burton’s Biscuit Company and Fox’s Biscuits in the UK, Kelsen Group in Denmark and Delacre Biscuits in Belgium.
Ferrero Group and its related parties is the third largest player in the worldwide chocolate confectionery industry.
Stratus Acquires Priority LLC, formerly Priority Sign, a Provider of Turnkey Brand Implementation Services
CLEVELAND, June 11, 2024 /PRNewswire/ -- Stratus, the leading facilities services and brand implementation services firm, today announced the acquisition of Priority LLC ("Priority"), from Rubelmann Capital. Headquartered in Sheboygan, WI, Priority is a global turnkey brand implementation provider. Terms of the transaction were not disclosed.
The addition of Priority brings together two branding leaders with complementary strengths and business models. By integrating the expertise, resources, and client base of Priority, Stratus is positioned to deliver further value to customers and expands its footprint in key markets. This acquisition represents the fourth strategic acquisition executed by Stratus since 2021.
"This acquisition aligns seamlessly with our strategic vision for growth while also combining two teams with very similar core values. Our customers will also benefit from the addition of Priority through an expanded global presence and combined expertise. It's a 'win' for everyone, and we welcome the Priority team to Stratus," said Tim Eippert, CEO of Stratus.
Founded in 1997, Priority helps companies brand their spaces through signage, graphics, and branded environments. The company has worked with well-known global companies across many business segments including financial services, fitness, telecommunications, restaurant, retail, healthcare, and corporate facilities.
"We've spent decades building this business and driving growth. This combination builds upon the strong foundation we've created and will seek to unlock the growth potential for our team by enhancing our service offerings to better meet the evolving needs of our customers," said Jody Linnig, CEO of Priority.
Godfrey & Kahn represented Stratus in the transaction. Citizens M&A Advisory served as exclusive financial advisor and Haynes and Boone represented Priority in the transaction.
About Stratus
Stratus is a leading brand implementation and facilities services company offering signage solutions, energy services, repair and maintenance programs, and refresh and remodel capabilities across 50 states and 24 countries. With more than 50,000 projects completed annually, the Company provides versatile solutions for some of the world's largest and most recognized brands. Headquartered in Mentor, Ohio, Stratus has additional operations centers in Illinois, Texas, Florida, and New Jersey and production facilities in Texas, South Carolina, and Illinois. Stratus is a portfolio company of Vestar Capital Partners. For more information, please visit www.stratusunlimited.com.
Tech24 Strengthens its Board of Directors with Three New Members
GREENVILLE, S.C., May 1, 2024 /PRNewswire/ -- Tech24 (or "the Company"), a national industry leader in commercial foodservice equipment repair and maintenance, announced today that Steve Don, Jennifer Mintman and Bill Viveen all recently joined the Company's Board of Directors. Tech24 is backed by private investment firms Vestar Capital Partners ("Vestar") and HCI Equity Partners ("HCI").
"Steve, Jennifer, and Bill all possess specific, differentiated skillsets gained from decades in their respective fields that will be advantageous to the Tech24 leadership team as it looks to accelerate organic and acquisitive growth while continuing to provide excellent service to its customers," said Nikhil Bhat, Co-Head of Investments at Vestar, and Doug McCormick, Managing Partner and CIO of HCI. "All three are executives we've worked with over the years, and we are confident that they will add immediate value to the Board."
Mr. Don is the CEO and President of Edward Don & Company (DON), a leading distributor of foodservice equipment and supplies and former Vestar portfolio company, bringing to the Board significant experience both with foodservice customers and in the commercial kitchen equipment space.
Ms. Mintman is a Senior Advisor at Vestar, and previously was the Chief Strategy Officer of Brightview, the nation's largest commercial landscaping services company. She was also the former General Manager of GE Consumer Home Services, a consumer appliance repair and replacement parts and service business, and brings to the Board decades of experience in route-based facility services.
Mr. Viveen is CEO of HCI's latest technical service rollup focused on the residential lawn care treatment market. He is also the former CEO of Heartland Home Services, one of the largest residential HVAC providers in the country. He brings to the Board a strong track record of creating value in service providers through M&A, effective integration, and organic growth initiatives.
Mr. Viveen joined the Board in 2024. Mr. Don and Ms. Mintman were appointed to the Board at the time of Vestar's investment in 2023.
"I welcome Steve, Jennifer, and Bill to the Board. Their deep experience in foodservice and route-based facilities services will help us achieve our vision of becoming a premier commercial kitchen equipment repair services platform by providing an excellent customer experience from an outstanding team of technicians and employees," said Dan Rodstrom, CEO of Tech24.
Vestar Capital Partners Closes $1.2 Billion Continuation Vehicle for Circana
NEW YORK, April 23, 2024 /PRNewswire/ -- Vestar Capital Partners ("Vestar"), a leading U.S. middle-market private equity firm, today announced the closing of a $1.2 billion single-asset continuation vehicle for its stake in Circana (or the "Company"), a leading global advisor on the complexity of consumer behavior. Blackstone Strategic Partners and HarbourVest Partners acted as lead investors in the transaction.
Vestar led a recapitalization of Information Resources Inc ("IRI"), Circana's predecessor, with IRI's original control shareholder New Mountain Capital ("NMC") in 2018. In 2022, IRI merged with NPD Group ("NPD"), a Hellman & Friedman ("H&F") portfolio company, to form Circana, now jointly owned by H&F, Vestar, NMC and management.
"We're excited to reaffirm our support of Circana and its management team through this innovative transaction, which will provide important new committed capital for growth and investment. Vestar partnered with New Mountain Capital and management to drive significant value creation at IRI, and to catalyze the merger with NPD to create Circana as a leading global technology, analytics and data provider with an outstanding management team and excellent economic model," said Dan O'Connell, Founder and CEO of Vestar. "We are pleased to offer existing investors the opportunity to redeem their ownership and generate liquidity at a very attractive return, or roll their interests into the continuation vehicle, while at the same time welcoming new investors to the Vestar family who have endorsed the future opportunity for Circana."
The market-based process established an attractive alternative for existing Vestar investors to consider full and partial liquidity or rollover while providing the Company with access to committed capital for accretive initiatives.
"We are pleased to continue our partnership with Circana's management and investor group as we see many more opportunities ahead for both organic and inorganic growth," said Norm Alpert, Founding Partner and President at Vestar. "More than 7,000 brands and retailers worldwide rely on Circana's unparalleled technology, advanced analytics and cross-industry data delivered at world-class speed to gain a complete view of consumers and their markets. We believe there are abundant opportunities for Circana to deepen its relationships with existing customers, while also expanding into new markets and regions, which will be fueled by this new investment."
"Circana, including the Vestar team, has done an incredible job building a mission-critical partner for the world's leading and most innovative brands and retailers across a broad range of industries. Partnering with Vestar to drive the next chapter of the company's growth is another example of our long-standing strategy to identify and invest behind key themes like information services, while partnering with leading managers to provide custom liquidity solutions," said Patrick Jennings, Managing Director at Blackstone Strategic Partners.
"We are excited to partner with Vestar on this significant transaction, which reflects our conviction on Circana's promising future," said Dustin Willard, Managing Director at HarbourVest Partners. "Our experience executing secondary processes aligned well with Vestar in order to provide existing investors with options for liquidity or extending their ownership of a company with strong growth potential."
Evercore and Jefferies LLC served as financial advisors and Kirkland & Ellis LLP served as legal advisor to Vestar on the transaction. Proskauer Rose LLP served as legal advisor to Blackstone Strategic Partners and Sidley Austin LLP served as legal advisor to Harbourvest Partners on the transaction.
Mid-Market Deal of the Year: Vestar Capital Partners and Edward Don & Co
Buyouts
Mid-Market Deal of the Year: Vestar Capital Partners and Edward Don & Co
By Gregg Gethard
Published April 1, 2024
Vestar Capital Partners' exit of foodservice equipment and services distributor Edward Don & Co was a rarity this past year, not just because of its sterling financial results, but also because it was acquired by a publicly traded strategic investor. According to sources familiar with the deal, wholesale food distributor Sysco acquired Edward Don for $1 billion, reflective of more than 3.5x growth in the company's enterprise value. What made Vestar's investment in Edward Don so successful and unique?
Find a family business
Vestar managing director and co-head of investment Nikhil Bhat says the manager took the steps to first identify a well-known company, followed by providing resources to Edward Don's well-regarded CEO, Steve Don, whose family started the company in 1921.
Essentially, Vestar found a successful family business and kept it a family business, and then focused on growth after its investment in 2017.
According to Vestar, it acquired Edward Don through Vestar Capital Partners VI, which closed on $814 million in 2013.
"We want to invest in management teams who know how to grow their business. We provide them with more capital and our know-how to allow them to do what they want to do," says Rob Rosner, Founding Partner at Vestar.
Edward Don's motto of "Everything but the food" reflects its expertise in providing supplies like glassware, plates, tablecloths and more to its customer base of restaurants, hotels, healthcare facilities and similar entities.
According to Bhat, Edward Don showed strong organic growth due to Steve Don's skills as an operator, in addition to his great relationships with customers and vendors, which continued after Vestar's investment.
But the company lacked a presence in certain regions of the country, allowing it to target add-on companies in the Pacific Northwest and elsewhere on the West Coast.
The company had not grown through acquisitions before Vestar's investment, Bhat says.
"We and Steve saw Edward Don as a strong platform for M&A. The company already had deep relationships with smaller family-owned businesses in the industry. We came in with capital and a playbook for analyzing and structuring accretive acquisitions," Bhat says.
Add-ons during Vestar's ownership included Myers Restaurant Supply, Shervan Colonel Equipment, Atlanta Fixture & Sales Co and Smith & Greene.
Pandemic effects
Every company even remotely connected to the foodservices industry faced fierce headwinds during the 2020 pandemic and resulting social shutdown. Bhat says Edward Don didn't just manage to survive the pandemic, but its quick pivoting set it up for future success.
"Performance during the pandemic was a testament to management's operational and strategic leadership. Demand significantly declined as people stopped dining indoors. Customers stopped buying glasses and plates, shifting their spend to hand sanitizer and takeout containers," Bhat says.
Understanding this shift allowed Edward Don to still deliver for its customers while protecting its balance sheet and cashflow, avoiding having to do a "slash and burn" to maintain stability and preserving its capital, according to Bhat.
Then once dining restrictions were lifted nationwide, Edward Don had enough dry powder and capacity to meet the overnight demand from its customers.
"Management's careful planning gave Edward Don the ability to be aggressive when customer demand was coming back. The company was able to overservice and overdeliver by investing ahead of the curve. If we had waited a few months longer, the company might have missed a big part of the resurgence," Bhat says.
Edward Don was also in place to weather the struggle to find drivers and warehouse operators once restrictions were lifted - along with the increased wages potential employees were seeking for their efforts.
Bhat says the company's strong culture, while keeping an eye on adding efficiencies for its existing labor pool and infrastructure, helped Edward Don attract talent.
"The company could have pulled back more on hiring. But we believe that would have been penny wise and pound foolish. You might protect EBITDA for a month or a quarter, but that doesn't help your customers. Edward Don took a long-term view and knew it needed to maintain its investment in people and logistics infrastructure to service its customers," Bhat says.
Vestar certainly helped the company grow its business - sources familiar with Edward Don say the firm's EBITDA grew nearly 3x.
But, more importantly, Vestar changed the company's story. This new narrative brought it to the attention of Sysco - a $39.8 billion giant in the adjacent food distribution industry.
"We've always endeavored that, in addition to growing earnings, we want to create a before-and-after picture for our investments. By the time we were looking to exit, there was a clear change in the profile of the company prior to our involvement," Bhat says.