INDUSTRY:
Food Manufacturer, Consumer

DESCRIPTION:
Producer and procurer of premium specialty rice, quinoa, and grains for the foodservice, industrial, and retail sectors

Transaction Overview

Riviana Foods, North America’s largest processor, marketer and distributer of branded and private label rice products, acquired the assets of InHarvest, a leading producer of premium specialty rice, quinoa and grains for the foodservice, industrial, and retail sectors, for $48.75 million.

The acquisition expands Riviana’s operations and geographic footprint into California and includes two production facilities in Colusa and Woodland strategically located in the rice-growing area of the Western United States. In addition, with InHarvest’s focus on the foodservice, ingredients/industrial and retail/private label sectors, the purchase complements and enhances Riviana’s current business in those segments.

“The acquisition of the InHarvest business is an excellent fit and consistent with our strategic plan to expand our position in the specialty value-added rice, quinoa and grains markets,” said Enrique Zaragoza, President & CEO of Riviana. “We are excited about this expansion as we also look forward to welcoming InHarvest’s employees to the Riviana team.”

Cherry Tree’s Role:

Cherry Tree was engaged to advise InHarvest and its shareholders as they considered an unsolicited bid from a strategic party seeking to acquire the business. The objectives were to maximize shareholder value and terms of a transaction, while managing an efficient closing process. The Cherry Tree team advised the shareholders throughout the entire process, which included soliciting the LOI bid and negotiating terms, supporting the Company in the confirmatory due diligence process, negotiating terms of the purchase agreement and managing the overall process of closing the transaction.

About InHarvest, Inc.:

About Riviana Foods Inc.:

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

INDUSTRIES:
Branded Consumer Products

DESCRIPTION:  
Insect Traps

Situation

The founders of Dynamic Solutions Worldwide (“DSW”) built a tremendously successful company around a single product, the DynaTrap insect trap. Originally introduced in 2006 by Juan Rocha, DSW experienced tremendous growth as its highly effective insect traps were complemented by strong consumer marketing programs and distribution through warehouse clubs, hardware and lawn and garden retailers, and TV shopping channels. During the course of their amazing run and succession planning discussions, the decision was made to sell DSW.

Cherry Tree’s Personalized Solution

Through its prior operating and M&A experience in the hardware and lawn and garden industry, Cherry Tree worked closely with the founders to create a competitive sale process that would result in a favorable outcome for themselves as well as their employees. At the top of their list and throughout the entire process, an emphasis was placed on how a particular suitor would treat their personnel. The founders had created a team-based culture that they knew was a critical element of the success of DSW. From our prior industry experience, Cherry Tree leveraged its network and, carefully, filtered the target buyer list for suitable candidates.

Outcome

The founders were extremely sensitive about confidentiality so the initial outreach was done with a very generic “teaser” that did not identify the company. After calling each targeted buyer and entering into confidentiality agreements, a comprehensive Confidential Memorandum was supplied. Follow-up Q&A sessions were handled by Cherry Tree to further qualify interest and generate excitement. A double-digit number of offers were received, of which a handful were invited to face-to-face half-day meetings with DSW’s leadership team. The uncertainty surrounding tariffs was a major external factor however the leadership team had a tariff mitigation plan in action plus the overall performance and outlook of DSW continued to exceed projections.

In a near perfect fit with the owner’s goals, DSW was acquired by Woodstream Corporation, a leading provider of pest control and lawn and garden solutions that includes thirteen market leading brands including Victor, Terro, and Safer.

About Dynamic Solutions Worldwide

Dynamic Solutions Worldwide is the maker of the DynaTrap brand of insect traps, a safe, silent, and simple way to safeguard living spaces from mosquitoes and more by trapping insects without the use of chemicals. Founded in 2011 and located in Milwaukee, its products are available through major retailers including Home Depot, Costco, Sam’s, Bed Bath & Beyond, Amazon, and Ace Hardware, as well as on QVC, HSN and online retailers.

About Woodstream Corporation

Woodstream Corporation is a global manufacturer and marketer of a broad portfolio of branded pest control and lawn & garden products, under brands such as Victor®, Terro®, Perky-Pet®, Havahart®, Safer®, Sweeney’s® and Mosquito Magnet®, among others. The company’s products, which have leading market share positions within their respective segments, are sold at more than 100,000 retail locations and to professional pest control providers throughout the United States, Canada, the United Kingdom, and other international markets.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services. For more information, visit Cherry Tree & Associates.