The Los Angeles private equity firm that owns the Bolthouse Farms and Chosen Foods brands announced an agreement to acquire a Southern California maker of kombucha beverages.
Generous Brands, a refrigerated beverage platform formed by Bufferfly last year, plans to buy Health-Ade from private equity firms First Bev and Manna Tree Partners, officials announced. First Bev and Manna Tree will also become minority shareholders of Generous Brands under the deal.
Terms of the transaction were not disclosed, but sources familiar with the matter told the Wall Street Journal that the deal was worth $500 million.
Health-Ade, based in suburban Los Angeles, sells its products in more than 65,000 locations nationwide and posted annual retail sales of nearly $250 million, Generous Brands officials said. The platform said that it will help the scale its footprint and bolster both investment and innovation.
Following the close of the transaction — expected in the third quarter of the year — Generous Brands will have four brands: Health-Ade, Bolthouse Farms, Evolution Fresh and Sambazon.
“With its purpose-led brand and products that are positioned at the intersection of delicious taste and modern health trends, Health-Ade fits perfectly into our platform and growth strategy,” Generous Brands CEO Steve Cornell said in a statement.
Butterfly also owns wine company the Duckhorn Portfolio, organic egg brand Pete & Gerry’s and burrito chain Qdoba.
