The Bottom Line: NewSpring Invests in The Virginia Food Group
December 03, 2024
NewSpring ("the Firm"), a family of private equity strategies, today announced that NewSpring Mezzanine, the Firm’s dedicated private credit strategy, has made an investment in The Virginia Food Group (VFG) to support its future growth. This investment was made alongside Azalea Capital, Farragut Capital Partners, Salem Investment Partners, Gordon River Partners, and Promise Holdings. The transaction was also supported by Atlantic Union Bank, which provided senior debt.
Peanuts and snack mixes are growing in popularity
VFG is a dominant player in the niche gourmet peanut market with multiple well-established brands. As demand for peanuts grows due to health benefits relative to other snacks, the Company sees significant runway to expand sales across the U.S. and Canada.
“We are very excited to partner with NewSpring and our other institutional investors. Their alignment with our core values and emphasis on growth will enable VFG’s brands and our associates to reach their full potential. We look forward to bringing our distinct snack offerings to many new customers and retail partners in the coming years.”
The company will use the proceeds of this transaction to expand sales distribution
VFG currently owns more than 165,000 square feet of retail, manufacturing, and warehouse space, but sees an opportunity to expand sales by growing its market share in big box retail direct-to-consumer sales channels and other specialty retail and gourmet shops.
VFG has named a new CEO as part of the transaction
Andrew Whisler, former President and shareholder of VFG since April 2019, has been promoted to CEO with the completion of this transaction. Whisler and Bill Delchiaro, former CEO and Chairman of VFG, will remain shareholders in the company and serve on the Board of Directors.
“The VFG brands have done a tremendous job creating high-quality products that resonate with consumers. With additional investments in new sales and marketing initiatives, we see a clear pathway for continued growth. Andrew has done a tremendous job expanding the company into the market leader it is today, and we’re excited to work with him and his team to bring VFG to new levels of success.”