Sterling Foods Ltd. GF Management Corp., and Austin Ventures today announced TGFM and AV’s acquisition of Sterling Foods. The transaction closed on December 30, and financial terms were undisclosed. The investment by TGFM, made through its latest private equity fund, Southwest Opportunity Partners, L.P., is in partnership with AV and the Sterling Foods management team.
Founded in 1971, Sterling is a leading supplier of baked goods, as well as a provider of gourmet bakery items to the food service and retail industries. Based in San Antonio, Texas, Sterling's products include a wide variety of specialty and gourmet baked products such as brownies, cakes, cookies, snack breads, soft pretzels, muffins, scones, pizza crusts and biscuits. Sterling is the largest supplier of shelf stable bakery products to the military, and also provides products to the kindergarten through 12th grade educational market, weight management industry, and other specialty commercial markets. Its products are sold in nationally recognized restaurant chains, leading supermarkets, and club stores.
In 1993, TGFM acquired Sterling Foods from its family-held owners and hired John D. Likovich as Chief Executive Officer. Under TGFM’s direction, Mr. Likovich and his strong management team grew the business almost three-fold, and in 2001 TGFM sold the business to ICV Capital Partners. Since then, management has significantly diversified and increased the Company’s source of revenues and profitability through organic growth, entry to new markets, and the acquisition of Buena Vista Foods in 2007. TGFM and AV believe the next phase of Sterling Food’s growth will be driven by unique product offerings, geographic and new channel expansion, and additional capital investment in equipment aimed at increasing the efficiency of the operations.
“We have known John and his team for 14 years and look forward to working with them again to continue a legacy of expanding the business,” said Vernon Bryant, a Partner at TGFM. Mr. Likovich added, “The management team and I are excited to re-engage with TGFM and to add AV to the team as the Company embarks on executing the next phase of its growth plan.”
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