FOLCROFT, Pa. — Keystone Capital has signed a definitive agreement for House Foods Holding USA to acquire 100% of Keystone Natural Holdings LLC, 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 U.S. 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.