Investment firm Brynwood Partners said Wednesday it is establishing its third Chicago-based company to manage its latest acquisitions.
The firm is buying the Marie’s salad dressing line and Dean’s Dip, products made in Thornton, from Ventura Foods of Brea, California. Terms were not disclosed.
Henk Hartong, chairman and CEO of Brynwood, said the products will be part of a new company, West Madison Foods, with offices at 500 W. Madison St.
Hartong said the Thornton factory, 201 Armory Drive, employs 84 full-time workers and about 25 will be hired for support downtown, including corporate transfers.
“We look forward to partnering with the team in Thornton to enhance manufacturing and bring more products and new innovations to market,” Hartong said.
The company will join two other Brynwood units also at 500 W. Madison St. They are Hometown Food, owner of baking mixes whose brands include Hungry Jack, Birch Benders and certain Pillsbury products, and Great Kitchens Food, maker of private-label frozen pizzas.
Great Kitchens also owns the Uno line of deep-dish frozen pizzas. It manufactures in Romeoville and Chicago Heights.
The three companies employ close to 1,000 people in the Chicago area and account for $1.3 billion in annual sales, Hartong said.
He said Brynwood is putting private equity to work in a “corporate carveout” strategy. It acquires well-regarded brands that are no longer core businesses for larger conglomerates.
“We are doing very well with our strategy,” he said. “There are things we think we can do to help these brands.” Hartong cited as an example increased sales of Uno pizzas at Mariano’s stores.
He said the sale of Marie’s and Dean’s Dip should close by the end of July.
Marie’s is a brand that dates from 1959. Its top sellers include bleu cheese, Caesar and ranch dressings. Dean’s Dip includes French onion and ranch flavors and is sold under license from the Dean’s dairy brand.
Brynwood is based in Greenwich, Connecticut and owns other food and beverage makers. Hartong said its holdings generate $2.6 billion in annual sales and have 4,700 workers.