By Gerelyn Terzo, Global AgInvesting Media
Canadian private equity firm Fulcrum Capital has made an investment into Sunco Foods through its Fund VI, a middle-market-focused investment vehicle. Burnaby, British Columbia-based Sunco Foods is known for making nut-based butters, snacks and value-add food ingredients as well as importing processing and distributing organic and naturally sourced nuts, seeds, dried fruits, grains and legumes. Sunco represents the fifth investment for Fulcrum Capital’s Fund VI, which reached final close in 2022.
The investment is expected to help Sunco meet rising demand for nut-based products. North America’s nut market is worth $31 billion and growing, led by almonds and cashews, amid strengthening demand from consumers for healthy snacks. Sunco’s customers include food retailers, food manufacturers and food-service providers around the world. The company provides a variety of private label and branded products to retailers, including large grocery chains as well as independent stores in addition to distributing ingredient products to manufacturers and food-service providers.
Since inception in 2011, Fulcrum Capital has raised over C$900 million over 50-plus of what it calls “platform investments,” several dozen exits and a gross IRR of approximately 26 percent. Fulcrum Capital completed the first close of Fund VI in 2021, at which time the firm said it had received “strong interest” from both Canadian and international investors.
Fulcrum Capital’s Fund VI also includes an investment in FE Ingredients, a major distributor of baking supplies and food ingredients to the Ontario market, which the PE firm made back in 2023. The PE firm was looking to surpass C$300 million (US$209.9 million) for the fund tally.
Fulcrum Partner Graham Flater stated, “We are delighted to be invested with [Sunco President Samir Virani] and his family to support Sunco’s continued growth. The company’s impressive production facilities, commitment to quality and strong food safety culture is evidence of the success that the family and Sunco’s team have had since the business was founded in 2009.”
Sunco President Samir Virani said, “We are excited to partner with Fulcrum to accelerate our growth strategy while maintaining our focus on product quality and customer service. We look forward to expanding our capabilities to meet the growing demand for nut-based butters, ingredients, and snack foods.”
The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.