~Private Investment in 156-Year Old Flavoring
Products Company That Is Positioned for Long Term Growth and
Profitability~ ~Cannae, KDSA and Existing Ownership Partnering to
Drive Long Term Value Creation~
Cannae Holdings, Inc. (NYSE: CNNE) (“Cannae” or the “Company”)
in partnership with KDSA Investment Partners (“KDSA”) announced
today an agreement to acquire a majority stake in The Watkins
Company (“Watkins”), a 156-year-old American heritage brand
renowned for its high-quality flavoring products. This strategic
investment aims to leverage the strengths of both Cannae and KDSA
to drive growth and innovation for Watkin’s fast-growing portfolio
of flavoring products including spices, seasonings, and extracts.
The current majority owner and Chairman, Mark Jacobs, will roll a
significant equity stake into the transaction. The transaction,
which is subject to customary closing conditions, is expected to
close in October 2024.
Watkins is positioned as a premium but affordable brand in
spices, seasonings & extracts, and as a leader in the natural
and organic space, offering high-quality products with a long
history of craftsmanship and expertise in flavoring. Watkins has a
substantial foundation and runway for growth both within retail,
including new and existing customers, and other new channels and
geographies.
William P. Foley, II, Chairman and CEO of Cannae, commented,
“This acquisition reflects the opportunity for Cannae to make a
private investment into one of the fastest growing segments within
the U.S. food industry. The spices and seasonings category benefits
from long-term secular consumer tailwinds, and Watkins is well
positioned as a high-quality, premium brand. We look forward to
partnering with Mr. Jacobs, KDSA, Mr. Rigley and the entire Watkins
management team and believe that our combined resources and
experience will enable Watkins to achieve new heights going
forward."
"This partnership with Cannae and KDSA is an exciting
opportunity for our company and our brand”, said Mark Jacobs,
Chairman of Watkins. "We are thrilled to collaborate with such
experienced and visionary investors and operators to continue our
legacy and expand our reach."
“We are looking forward to partnering with Cannae and the team
at Watkins to support the company’s continued expansion and build
on its tremendous success and strong brand heritage,” said David
Knopf, Co-Managing Partner of KDSA. “As owner-operators
specializing in the food sector, we see huge opportunities for the
business to continue to grow both organically and inorganically and
look forward to supporting the team in its mission to deliver
exceptional products to consumers.”
“We are looking forward to the future with great optimism," said
JR Rigley, CEO of Watkins. "This new chapter will allow us to
continue to build on our rich legacy while exploring new avenues
for growth and innovation. Together with Cannae and KDSA, we will
ensure that Watkins remains a leader in the flavoring industry.
Guaranteeing that Watkins continues to operate efficiently and
effectively while maintaining a steadfast commitment to quality for
consumers is our utmost priority.”
Intrepid Investment Bankers acted as the exclusive financial
advisor to Watkins. Fifth Third Securities acted as the exclusive
financial advisor to KDSA. Sklar Kirsh is serving as legal advisor
to Watkins; Cooley is serving as legal advisor to Cannae; and
Greenberg Traurig is serving as legal advisor to KDSA.
About Cannae Holdings, Inc.
We primarily acquire interests in operating companies and are
actively engaged in managing and operating a core group of those
companies. We believe that our long-term ownership and active
involvement in the management and operations of companies helps
maximize the value of those businesses for our shareholders. We are
a long-term owner that secures control and governance rights of
other companies primarily to engage in their lines of business and
we have no preset time constraints dictating when we sell or
dispose of our businesses.
About KDSA Investment Partners
KDSA is an investment partnership focused on founder-led and
family-owned businesses in the food and beverage industry.
Co-Founders David Knopf and Andrew Souza established KDSA to
acquire and grow businesses with long-term capital, utilizing their
extensive operational and investing experience, industry
relationships, and network of experienced operating partners to
drive long-term growth in its portfolio companies. For more
information, visit KDSA Investment Partners.
About The Watkins Company
From the bluffs high above the Mississippi River in Winona,
Minnesota, comes the purity of The Watkins Company. For over 150
years, Watkins has been heralded as purveyors of flavor, with an
unwavering commitment to crafting award-winning gourmet flavoring
products from high-quality, natural ingredients, without the use of
artificial flavors and colors, GMOs, corn syrup or gluten. For more
information on The Watkins Company, please visit
www.watkins1868.com.
Forward-Looking Statements and Risk Factors
This press release, and any related oral statements contain
forward-looking statements that involve a number of risks and
uncertainties. Statements that are not historical facts, including
statements regarding our expectations, hopes, beliefs, plans,
intentions, or strategies regarding the future are forward-looking
statements. Forward-looking statements are based on management’s
beliefs, as well as assumptions made by, and information currently
available to, management. Because such statements are based on
expectations as to future financial and operating results and are
not statements of fact, actual results may differ materially from
those projected. Except as required by applicable law, we undertake
no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise. The risks
and uncertainties that forward-looking statements are subject to
include, but are not limited to: risks associated with our ability
to successfully operate Watkins; changes in general economic,
business and political conditions, including changes in the
financial markets and changes in macroeconomic conditions resulting
from the outbreak of a pandemic or escalation of the current
conflict between Russia and Ukraine; risks associated with the
Investment Company Act of 1940; our potential inability to find
suitable acquisition candidates, acquisitions in lines of business
that will not necessarily be limited to our traditional areas of
focus, or difficulties in integrating acquisitions; significant
competition that our operating subsidiaries face; risks related to
the externalization of certain of our management functions to an
external manager; and other risks.
This press release should be read in conjunction with the risks
detailed in the “Statement Regarding Forward-Looking Information,”
“Risk Factors” and other sections of the Company’s Forms 10-Q, Form
10-K and our other filings with the Securities and Exchange
Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241007498753/en/
Jamie Lillis, Managing Director, Solebury Strategic
Communications, 203-428-3223, jlillis@soleburystrat.com
Cannae (NYSE:CNNE)
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