Avatar Corporation

Situation

Founded in 1982, Avatar’s product solutions and distribution activities primarily serve the food processing industry, with a focus on bakery, meat, pet food, dairy and confectionary. The Chicago-based company offers a variety of products including oils and antioxidants, as well as food processing aids such as high-performance release agents.

The founder and CEO of Avatar passed away and the Company and its assets were transferred into a trust. Recognizing that the long-term interests of all stakeholders would be best served under new ownership, the Trustee engaged Amherst Partners to pursue a liquidity event that would maximize value for the beneficiaries of the Trust.

Solution

Amherst’s comprehensive approach generated broad interest from prospective domestic and international buyers that recognized Avatar’s distinct set of unique competitive advantages in the food ingredient/specialty chemicals industry. During a time of economic and geopolitical turbulence, Amherst was able to keep buyers engaged and focused on the attractiveness of the investment opportunity, resulting in substantial interest from multiple buyers, both strategic and financial.

Results

Ultimately, the Company elected to pursue a transaction with Caldic B.V., a firm with direct industry experience and a desire to support Avatar’s growth initiatives.

Caldic, backed by Advent International, develops, manufactures, and distributes customer-specific formulations and solutions for chemical and food markets.

Caldic’s acquisition of Avatar (i) further strengthens its portfolio for the North American food industry, (ii) expands its value-add manufacturing capabilities for customized solutions, and (iii) adds logistical infrastructure by way of on-site railroad access.