FlavorSum to join Warburg Pincus in move to accelerate natural flavor innovation

U.S.A. – Warburg Pincus, the pioneer of private equity global growth investing, has announced an agreement to acquire FlavorSum, a provider of natural flavor solutions for food & beverage companies, from The Riverside Company. 

Financial details of the transaction were not disclosed.

FlavorSum develops and produces custom natural liquid flavors, extracts, and flavor systems used across food and beverage applications, primarily serving high-growth, disruptive brands. 

It operates with nearly 100k square feet of manufacturing space across North America, along with a dedicated innovation center

With core competencies in R&D and application support, the Company offers its customers standout flavor formulation capabilities, combined with industry-leading operational excellence, and customer experience.

“We are proud of the team and the pure-play flavor platform we built during our partnership with Riverside,” said FlavorSum CEO Brian Briggs. “Over Riverside’s investment period, FlavorSum acquired and fully integrated four complementary add-on acquisitions, completed a 35k sq. ft. facility expansion, and invested strategically in R&D, applications, and sales and marketing.” 

Briggs added that the company’s solutions model has fueled industry-leading organic growth, positioning FlavorSum as the “Acquirer of Choice” in the sector. He said the team looks forward to building on this foundation and driving future growth with their new partners at Warburg Pincus.

“FlavorSum has been purpose-built for the unique needs of fast-growing, innovative brands, offering an unmatched combination of service (across R&D support, short lead times and best-in-class reliability) with the industry’s deepest flavor and application expertise,” said Zach Lazar, Managing Director at Warburg Pincus. 

He noted that FlavorSum is especially well-positioned to meet rising demand for natural solutions across food and beverage applications.

“We are tremendously excited to partner with Brian and the FlavorSum team to continue the Company’s standout growth, including actively pursuing add-on acquisitions,” Lazar added.

The Riverside Micro-Cap Fund, through its Senior Partner Alan Peyrat, also commented on the transition, noting that they enjoyed the opportunity to partner with the FlavorSum team and wished them much success in their next chapter. 

Houlihan Lokey and Cascadia Capital are acting as financial advisors to FlavorSum, and Jones Day is acting as legal counsel. BMO Capital Markets is acting as financial advisor to Warburg Pincus, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel.

The transaction is expected to close later in the third quarter.

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