Canadian private equity fund, NOVACAP, announced it has agreed to sell Idaho Pacific Corp., a supplier of dehydrated potato products, to U.S. food and ag investment firm Arlon Group for an undisclosed amount.

Located in Ririe, Idaho and included as a portfolio company of the NOVACAP Industries III fund since May 2011, Idaho Pacific includes production facilities in Idaho, Colorado, and Prince Edward Island. The company supplies dehydrated potato flour, potato granules, and potato flakes to global food service, industrial, and export customers as key ingredients in the production of salty snacks, mashed potatoes, and bakery products.

“From our acquisition of IPH in 2011 and the value creating investments that followed, NOVACAP, along with the management team, have built IPH into a major player in the dehydrated potato sector,” said Domenic Mancini, Senior Partner at NOVACAP.

Founded in 1981, and with over $1.6 billion in assets under management, NOVACAP is a top private equity firm with offices in New York and Sao Paulo, Brazil. The firm invests in middle market businesses along the entire food and ag supply chain throughout the Americas and has fostered accelerated growth for more than 85 North American companies to date. Key investors in the firm include its founding investor, Continental Grain Company, and Rabobank. The firm also works in partnership with Brazilian investment company, VR Investments in Latin America.

“There continues to be strong interest in the M&A market for food ingredient businesses,” noted Brant Cash, a director at Harris Williams & Co. who advised Idaho Pacific through the deal negotiations. “Idaho Pacific’s position as a valued business partner for leading food manufacturers and food service operators has generated compelling financial results and attracted strong interest from investors.”

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Lynda Kiernan