September 16, 2022, Folcroft, PA. Keystone Capital has signed a definitive agreement for House Foods Holding USA (“House Foods”) to acquire 100% of Keystone Natural Holdings, LLC (“KNH”), a leading manufacturer of tofu and plant-based foods in North America. The proposed transaction is expected to close by the end of September 2022, subject to the satisfaction of customary closing conditions.
Through this acquisition, House Foods will expand its portfolio of value-added tofu and plant-based food products and accelerate its US market expansion plans. The combined company will have eight manufacturing facilities across North America.
Keystone Capital established the KNH platform by acquiring Nature’s Soy® in 2016, a regional plant-based food manufacturer focused on the ethnic channel. Through three strategic add-on acquisitions, KNH significantly expanded its product offering and channel reach. In 2019, KNH invested in a new manufacturing facility in Folcroft, Pennsylvania to capitalize on organic growth opportunities. The sale of KNH represents another successful outcome for Keystone Capital within its Food & Consumer investment efforts.
“We are proud of the work we have done at Keystone Natural Holdings,” said Chaoran Jin, Managing Director of Keystone Capital. “During our partnership, we invested significantly to expand KNH’s brand presence, manufacturing capacity, product development capabilities, as well as the leadership team in order to provide a broad range of healthy, innovative plant-based food products for grocery, club, and food service customers. We are extremely appreciative of the hard work, dedication, and commitment from the KNH management team in building a market leading business. We wish them the best for their new chapter with House Foods.”
Kenny Sung, Chief Executive Officer of KNH, who will continue to lead KNH, added, “Keystone Capital has been a great partner to work with, helping us successfully expand into additional strategic segments, which has positioned us to better serve our retail and food service customers in the ethnic and mainstream channel. With Keystone Capital’s help, we have integrated three add-on acquisitions, which has broadened our core market and accelerated our growth. We look forward to working with House Foods to continue our growth trajectory.”
Whipstitch Capital served as the exclusive financial advisor to KNH in the transaction. DLA Piper provided legal services to KNH and Keystone Capital.
Keystone Capital is a private investment firm based in Chicago, Illinois. Formed in 1994, its mission is to invest in and build a portfolio of exceptionally high quality, mid-sized businesses that are leaders in their markets. Keystone is differentiated by its investment of personal capital and investment horizon flexibility which has led to a distinguished track record of entering into true long-term operating partnerships with the professional management teams of its companies.
ABOUT KEYSTONE NATURAL HOLDINGS
Keystone Natural Holdings is a leading plant-based, better-for-you food company with operations in the United States and Canada. The company’s authentic and health-conscious products from storied brands, such as Nature’s Soy®, Franklin Farms®, and Superior Natural® are proudly sold through mainstream and ethnic channels via retail, mass market, natural, specialty, and food service outlets. The company continues to actively pursue strategic acquisitions to further expand its portfolio of innovative products and better serve consumers seeking alternative proteins for all meal occasions.
House Foods Group Inc. is a Japanese foodservice company headquartered in Tokyo and Osaka. House Foods was founded in 1913 as an herbal medicines and pharmaceuticals company, and over its 109-year history has grown into one of the largest Japanese suppliers of curries, spices, and other foodservice products, with over $2.3 billion in global revenue and over 6,100 employees. House Foods’ business in the United States (“House Foods America”, a subsidiary of House Foods Holding USA Inc.) is a leading supplier of water-packed tofu and related tofu products with over 100 million units sold annually across North America and Europe. House Foods America was established in 1983 and currently operates two manufacturing facilities in the United States with over 340 total employees.
