Sunsweet Purchases Function Drinks: Silverwood Partners Exclusive Financial AdvisorSHERBORN, MA - AUGUST 9, 2011
Sunsweet Growers Inc. today announced its acquisition of Function Drinks, a Southern California company known for its line of innovative, dietary supplement beverages. The acquisition is part of Sunsweet’s ongoing initiative to leverage its unique set of skills and resources to help emerging beverage brands break through to mainstream success.
“We’re very excited about the Function brand, the people behind it and the growth potential that we can help unlock. We also believe Function gives us a great foundation on which to begin building a great portfolio of beverages,” said Tony Gerst, Leader of New Venture Initiatives at Sunsweet.
In conjunction with the transaction, Sunsweet formed a wholly owned subsidiary, Disruptive Beverages Inc. (DBI). DBI has been formed to help drive the growth of developing beverage companies with strong products and ideas in today’s increasingly competitive and capital constrained landscape. Function is the first full acquisition as part of this plan and strong interest remains in finding additional emerging brands to add to its portfolio.
“As an award winning co-packer of the highest quality beverages, Sunsweet is familiar with new, innovative beverages and the companies who introduce them,” said Dane Lance, COO of Sunsweet Growers. “For beverage ideas and companies that we truly believe in and that we believe are innovative and have a chance to challenge the “beverage quo” we’ve set up a new approach to help them on their way.”
Function co-founders Dayton Miller, Alex Hughes will continue to maintain leadership positions in the company. While Sunsweet will leverage its resources wherever synergies exist, the Function business will continue to operate on a standalone basis. “We’re excited that Sunsweet has recognized the strong foundation Function has built,” said Function CEO Dayton Miller. “We look forward to tapping into Sunsweet’s vast experience to take Function to the next level,” added Function President a representative of Silverwoo d Partners.
“The better-for-you food and beverage market is growing rapidly, and Function’s products and brand have been at the forefront for several years – with strong sales acceleration over the past 12-24 months in key markets and retailers,” said a representative of Silverwood Partners. “We are pleased to have facilitated the successful transition of ownership; in Sunsweet, we found a buyer with significant consumer packaged goods experience and a vision for building its beverage platform with a strong, existing team. Sunsweet’s expertise and dedication to growing the Function brand should bode well for the future,” said a representative of Silverwood Partners.
Silverwood Partners acted as the exclusive financial advisor to Function Drinks in this transaction.
Established in 1917, Sunsweet Growers, a farmer-owned cooperative, is the world's largest handler of dried tree fruits, including prunes, apricots, and mangos. Sunsweet represents more than one-third of the global prune market and processes more than 50,000 tons of prunes a year. Sunsweet also produces and bottles premier branded juices, teas and waters for global consumption. For more information please visit www.sunsweet.com.
During his surgical training at UCLA, Dr. Alex Hughes discovered that with the right technical capabilities he could incorporate powerful all natural ingredients used every day in hospitals into drinks with extraordinary functionality. Alex partnered with his longtime friends, Dayton Miller, to create a drink line representing a marriage between mainstream clinical science and great-tasting beverages. Its core products, Urban Detox, Alternative Energy, and Light Weight are sold in leading retailers nationwide. For more information please visit www.functiondrinks.com
About Silverwood Partners
Silverwood Partners, LLC is a specialized investment bank that provides mergers & acquisitions and private placement advisory services to consumer products, media communications technology, and healthcare companies. The firm’s targeted industry focus allows it to bring a depth of knowledge and industry relationships to each client’s unique situation, and Silverwood has a hands-on, consultative approach with a high degree of senior partner involvement.
A principal focus of Silverwood is representing consumer products companies in the healthy living and broader LOHAS segment. The firm’s commitment and expertise in the natural products and healthy living sector has allowed Silverwood to develop strong relationship with institutional investors and strategic buyers active in the industry. For more information, please visit www.silverwoodpartners.com.
This release may include forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, about the future performance of one or more public companies. There are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, such as the competitive market in which any company operates, market acceptance of a public company's existing and new products, a public company's ability to anticipate customer needs and the other factors set forth under the caption "Certain Factors That May Affect Future Results," or similar, in a public company's filings with the Securities and Exchange Commission or other similar regulatory agencies in non-U.S. jurisdictions. In addition, any forward-looking statements contained herein represent an estimate only as of the date of such statement and should not be relied upon as representing an estimate as of any subsequent date.