Little more than a year after being acquired itself by Goldman Sachs and Vestar Capital Partners from private equity firm, Wind Point Partners, Hearthside Food Solutions, North America’s largest contract producer of baked goods and bars, has announced it has secured two separate acquisition agreements. The first is for the acquisitin of VSI, Europe’s largest producer of nutrition, diet and functional food bars, and the second is a nutrition bar production plant in Boise, Idaho from a subsidiary of Post Holdings Inc.

 

The acquisition of VSI will add three European manufacturing facilities and the company’s leading-edge research and development, innovations and formulations to Hearthside’s existing 19 U.S.-based facilities.

 

Due to growing trends of meal replacement, convenience, and snacking, market research firm Mintel, estimates that the U.S. bar category will see continued growth, particularly in the health-related bar categories including sports, diet, functional, and nutrition bar segments.

 

“This is both a category and geographic expansion, putting Hearthside into the three fastest-growing bar categories, as well as in the European market, where VSI is a leader,” said Rich Scalise, Hearthside Founder and Chairman.

 

The separate acquisition of the recently idled Boise, Idaho production facility will also support Hearthside in expanding production within North America.

 

“It takes two years from greenfield to operational bar plant,” said Dwayne Hughes, Hearthside SVP of Supply Chain. “We wanted VSI capacity in the North American mix more quickly. This facility is ready to go today. The timing, the location, and the state-of-the-art equipment provides a perfect solution that makes us competitive in more bar categories immediately.”

 

For VSI, this deal expands its reach and opens new markets for the company. Being a contract manufacturer, VSI will now be able to develop, formulate, and commercialize a new bar product for a customer and produce it for both the European and North American markets, setting a higher standard in the contract manufacturing space.

 

Financial terms for neither of the deals were disclosed, however, both deals are expected to close in September 2015.