Manufacturer of popular food brands including Chef Boyardee, Bumble Bee tuna, PAM cooking spray, and Gulden’s mustard
International Home Foods, Inc. is a leading North American manufacturer and marketer of a diversified, well-established portfolio of shelf-stable food products with popular brand names. The Company specializes in the production and distribution of shelf-stable food products, from entrees and side dishes, to fruit snacks and cereals, to canned fish and meats.
International Home Food’s high quality convenient products include Chef Boyardee canned pasta, Bumble Bee tuna, PAM cooking spray, Campfire marshmallows, Crunch ‘n Munch glazed popcorn, Polaner fruit spreads and spices, Gulden’s mustard, Ranch Style beans, Luck’s beans, Dennison’s chili, Jiffy Pop popcorn, Ro*Tel diced tomatoes and chilies, Washington’s dry seasonings and broths, and Maypo, Wheatena and Maltex hot cereals. International Home Foods’ products can be found in nearly all retail outlets including supermarkets, convenience stores, drug and mass merchants, and warehouse clubs.
Value Creation Opportunity
International Home Foods was formed in 1996 when American Home Products spun out its food business. Our team saw an opportunity to invest in a center-of-store company that had a diversified, well-established portfolio of shelf-stable products with strong brand name recognition. In addition to growing these brands through new product innovation and creating marketing programs, our team also saw an opportunity for growth in new channels such as food service and by leveraging the Company’s manufacturing base to provide private label products in categories where it also sold brands. The Kainos team saw International Home Foods as an acquisition platform that could leverage the Company’s well-maintained manufacturing facilities and strong sales and distribution network to consolidate numerous add-on acquisition opportunities. We also recognized that there were significant opportunities to increase efficiency through cost savings and more efficiently operating the manufacturing facilities.
Change Capital At Work
The Kainos team invested heavily into International Home Foods’ business, building out the senior leadership team and completing ten strategic add-on acquisitions in two years that supported strategic initiatives primarily in private label, seafood and snacks. Our team also helped International Home Foods initiate distribution in Mexico through Productos del Monte S.A. de C.V.
We worked alongside International Home Foods’ product innovation team to assist in the introduction of dozens of new products, two of which were the first fat-free or 99% fat-free entries in their categories. Our team also shifted the marketing strategy toward emphasizing investments in consumer-based advertising and marketing, while reducing trade spending and discounting. At the same time, we also identified substantial cost savings in the first two years by eliminating redundant expenses, consolidating suppliers and brokers, and streamlining production, distribution and administrative functions.
The Kainos Effect
In 1997, International Home Foods completed an initial public offering on the New York Stock Exchange (NYSE: IHF.) After building a world-class management team and making numerous acquisitions, International Home Foods was sold to ConAgra Foods in 2000.Back