Hearthside Food Solutions, Ryt-way Industries Merge

CHICAGOWind Point Partners, a private equity firm, will merge two of its portfolio companiesHearthside Food Solutions and Ryt-way Industries to create a leading contract food manufacturer in North America with more than $1 billion in sales and 19 manufacturing facilities across seven states. The merger is expected to become effective in late May.

Rich Scalise, CEO of Hearthside Food Solutions, will assume the role of CEO for the combined business. He is a 35-year veteran of the food industry who most recently served as President of Ralcorp Frozen Bakery Products, a division of Ralcorp Holdings, Inc. He previously spent 18 years with ConAgra Foods in a number of roles, including his last position as president and COO of ConAgras $3 billion Refrigerated Foods Division.

Wind Point acquired Hearthside in April 2009 and Ryt-way in August 2008. Both companies provide contract manufacturing services to leading food and consumer packaged goods companies in North America. During Wind Points ownership, Hearthside and Ryt-way each completed three acquisitions that further diversified each companys customer base and product portfolio.

Hearthside and Ryt-way have a complementary customer base and supply chain capabilities. The combined company will be not only significantly larger but also able to deliver a wider array of services," Scalise said.

Commenting on the move, Mark Burgett, a managing director at Wind Point, said: By combining two industry leaders, we are able to create significant growth opportunities for the business in addition to value for our investors. Given the similarities between the businesses, we expect to start realizing benefits immediately."