KEVIN'S NATURAL FOODS acquired by MARS
Context
Mars, Incorporated has entered into a definitive agreement to acquire Kevin's Natural Foods. This acquisition marks a significant step in Mars Food & Nutrition's strategy to expand into the high-growth "healthy eating" segment. Kevin's Natural Foods will operate as a standalone brand within the Mars Food & Nutrition division, retaining its entrepreneurial culture while leveraging Mars' global distribution network and R&D capabilities to scale. The deal provides an exit for early investors Towerbrook Capital and NewRoad Capital.
KEVIN'S NATURAL FOODS, which reported an EBITDA margin of [members only] in 2023, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average currently observed in the AgriFood sector (11.0x).
-> Deep-dive in AgriFood market trends
Target
Founded in 2019 and headquartered in Modesto, California, Kevin's Natural Foods is a fast-growing producer of healthy, refrigerated entrees, sides, and sauces. The company was co-founded by Kevin McCray, Dan Costa, and Kelsie Costa-Olson after McCray sought dietary solutions for an autoimmune disorder. Kevin's utilizes a proprietary sous-vide cooking method to create tender, shelf-stable (refrigerated) meats that are Paleo, Keto, and Gluten-Free certified, without sacrificing flavor. The company was previously backed by private equity firms Towerbrook Capital Partners and NewRoad Capital Partners.
Ent. Value
$500M–1.5bn
Equity Value
[members only]
Multiples
EV / Revenue
2x–6x
EV / EBITDA
[members only]
EV / EBIT
[members only]
Historical Financials (USD)
Similar deals in Food Processing
Similar deals in Food Processing
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 09/2023 | THE J.M. SMUCKER CO. | HOSTESS BRANDS, INC. | UNITED STATES | Food Products |
| 08/2023 | GROUPE AVRIL | HARI&CO | FRANCE | Food Products |
| 07/2023 | ROYAL UNIBREW | VRUMONA | NETHERLANDS | Soft Drinks |
| 07/2023 | MALTERIES SOUFFLET | UNITED MALT GROUP | AUSTRALIA | Food Processing |
| 06/2023 | IK PARTNERS | GOODLIFE FOODS | NETHERLANDS | Food Products |
| 06/2023 | HEINEKEN | OEDIPUS | NETHERLANDS | Wines & Spirits |
| 06/2023 | MITSUI & CO | NUTRINOVA NETHERLANDS | NETHERLANDS | Ingredients |
| 06/2023 | PERNOD RICARD | ACE BEVERAGE GROUP | CANADA | Wines & Spirits |
| 06/2023 | RIELLO INVESTIMENTI PARTNERS | IL FORNAIO DEL CASALE | ITALY | Bakery / Pastry |
| 06/2023 | 3I | PANELTO FOODS | IRELAND | Bakery / Pastry |
Other operations with MARS
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 11/2023 | MARS | HOTEL CHOCOLAT GROUP | UNITED KINGDOM | Fine Food / Organic |
| 01/2017 | MARS | VCA | UNITED STATES | Vet Clinics |
REFERENCES
Valuation range: EV $500M–1.5bn
Revenue range: $100–200M
EV/Revenue range: 2x - 6x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of KEVIN'S NATURAL FOODS by MARS are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: kevin's natural foods