Ontario Teacher's pension plan acquires majority stake in Shearer's Foods

The Ontario Teachers' Pension Plan announced the acquisition of an additional equity stake in Shearer's Snacks from Wind Point Partners (Wind Point). With this transaction, Teachers' holds a significant majority ownership in Shearer's, with company management remaining a meaningful shareholder. Wind Point retains a small interest in Shearer's.

Teachers' Private Capital (TPC), the private equity group of Teachers', acquired its initial stake in Shearer's in 2012 alongside Wind Point and in partnership with CJ Fraleigh, who joined as Chairman and CEO. Mr. Fraleigh has 25 years of experience in consumer products and most recently served as CEO of Sara Lee - North America.

During Teachers' and Wind Point's ownership, Shearer's completed the acquisitions of Lance Private Brands and Medallion Foods, doubling the size of the business and significantly expanding the private label and contract manufacturing product offerings.

"We have created significant value over the past two years deepening Shearer's longstanding relationships with branded companies and retailers by broadening our scope, both through internal initiatives designed to help our customers grow and by expanding our national manufacturing footprint and diversifying our product offerings," commented Mr. Fraleigh. "We are proud of the transformation accomplished while partnering with Wind Point and Teachers', and we believe this transaction has long-term positive implications for our customers and associates."

"Teachers' welcomes the opportunity to build on our relationship with Shearer's," said Jane Rowe, Senior Vice-President of TPC. "The company's strong management team has demonstrated its ability to grow organically and through acquisitions in a sector that continues to have attractive prospects."

Mark Burgett, a managing director at Wind Point stated, "The Shearer's story is an example of how Wind Point's strategy to partner with a top caliber CEO such as CJ can transform a business. CJ and the entire Shearer's team did an excellent job executing on our value creation plan, by increasing Shearer's category management and manufacturing capabilities to help its customers grow, improving productivity and completing add-on acquisitions."

Terms of the transaction are not being disclosed.