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Impact Capital Acquires Junkless Foods in Michigan
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Impact Capital Acquires Junkless Foods in Michigan

PE firm Impact Capital acquires healthy snack producer Junkless Foods to enter the better-for-you snacks industry.

Private equity firm Impact Capital, based in Florida, United States, acquired healthy snacks producer Junkless Foods, based in Michigan, United States, on October 5, 2023. Impact Capital made the acquisition because it sees potential for higher growth in the better-for-you snacks category.

Transaction Summary

Our Take on the Acquisition

Impact Capital (acquirer) acquired Junkless Foods (target) because the company expects consumers to transition to better-for-you or healthier versions of their favorite snacks. With investment and marketing, Impact Capital sees Junkless Foods expanding to become a major brand in the more nutritional snacks segment. Impact Capital’s owner, Mike Repole, has previously succeeded in growing other big brands in the food and beverage industry with the proper marketing, including BODYARMOR, Vitaminwater, and Smartwater. His business expertise and brand vision will be instrumental in the growth of Junkless Foods.

The Facts of the Acquisition

  • Target: Junkless Foods has been producing healthy granola bars since 2018 with natural and low-processed ingredients. The company is based in Michigan and sells through retailers, including Meijer, Amazon, and Walmart.
  • Acquirer: Impact Capital is the private equity arm of Mike Repole’s family office. It was set up in 2023 and has made one investment so far. Mike Repole is an American entrepreneur and businessman behind Glaceau, the maker of Vitaminwater and Smartwater, and BODYARMOR sports drink. Both were sold off to Coca-Cola in multi-billion dollar deals.

The Transaction

Date:October 5, 2023
Price:Undisclosed
Purpose: To invest in the better-for-you foods category
Acquirer’s Statement:Mike Repole, owner of Impact Capital – “We saw a huge opportunity for Junkless to become a major brand. Everyone is looking for better-for-you versions of their favourite snacks – and that’s exactly what Junkless provides. The passion of Ernie [Pang] and Larry [Beyer], the owners of Junkless Foods, and the entire Junkless team, combined with our experience growing small brands into scalable mainstream brands, is a perfect match.”

Target/Seller: Junkless Foods

Company Information

Target:Junkless Foods
Website:junklessfoods.com
Founded:2018
Industry: Food Manufacturing
Employees:9 (Self-published on LinkedIn)
Type:Private with seed funding
Total Funding:USD $150,000
Investors:Quake Capital Partners: A venture capital firm that invests in early-stage companies based in Texas, United States. Its total investment in Junkless was USD $150,000 in 2018.
Locations:Head Office: PO Box 2011, Portage, Michigan, United States

Product Information 

Products:Granola Bar: Granola bars made from healthy natural ingredients with few additives.
Market Reach:United States

Financial Information 

Revenue:USD $5.4 million (Unconfirmed source: ZoomInfo)
Revenue per Employee:USD $600,000 (i.e., USD $5.4 million / 9 employees = USD $600,000 – estimated based on the self-published number of employees and revenue from ZoomInfo)

Did You Know?

Marketing food items as more natural and nutritious is attractive to many consumers trying to live healthier lives. According to Future Market Insights research, the global better-for-you snacks market is expected to reach $37 billion by 2022, growing at a CAGR of 6.5% between 2022 and 2032. However, the better-for-you term means different things to different people. Generally, the term includes specific associations such as low sugar, calories, and fat, using natural, organic, less-processed ingredients, and non-GMO. According to Technomic’s 2022 Snacking Consumer Trend Report, consumers prefer snacks that are either energizing, high protein, immunity-boosting, high fiber, or low sugar. Even so, when consumers look for a snack, their top priority is that it has to taste good, so snacks must have great flavor and offer some health benefits.

Target/Seller Overview: Junkless Foods

Junkless was founded in Kalamazoo, near Michigan’s rich agriculture and food innovation industries, by Ernie Pang and Larry Beyer. The company was launched with a commitment to provide breakfast and snack food products that are much less processed than what was available on the market. All of its products contain eight or fewer basic ingredients, each of which is minimally processed. Junkless Foods makes granola bars without high fructose corn syrup, hydrogenated oils, artificial flavors, artificial colors or artificial preservatives, trans fat, and genetically modified organisms (GMOs). The company sells its products online and in stores through Amazon, Walmart, and other food retailers.

Junkless Foods makes a variety of granola bars with organic ingredients.

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Buyer/Acquirer: Impact Capital

Company Information

Buyer:Impact Capital
Founded:2023
Industry: Private Equity
Type:Limited Liability Partnership
Employees:7 (Self-published on LinkedIn)
Locations:Head Office: 4705 S. Apopka Vineland Road, Suite 206, Orlando, Florida, United States

Investment Areas

Investment Strategy:Buyout Investment Strategy: To gain controlling ownership of a company and create value by improving the operations of the company.

Financial Information 

Revenue: N/A

Buyer/Acquirer Overview: Impact Capital

Impact Capital is the private equity arm of Mike Repole’s family office. It was set up in 2023 by American serial entrepreneur and businessman Mike Repole, who is best known for co-founding Glaceau, the maker of Vitaminwater and Smartwater, which he sold to Coca-Cola for USD $4.1 billion, and BODYARMOR SuperDrink, a sports drink manufacturer, which was also sold to Coca-Cola for USD $5.6 billion.

In 2009, Repole became chairman of the board for Pirate’s Booty. He helped the company grow 300% in less than five years through rebranding, a strategic sales strategy, partnerships, and innovation before it was sold in 2013 to B&G Foods for USD $195 million. Mr. Repole was also an early major investor and board member in Kind before its sale to Mars in 2020.

Previous Acquisition by Impact Capital

  • Nobull (2023) – A sports training footwear and apparel company based in Boston, Massachusetts, United States, founded in 2015 by former Reebok executives Marcus Wilson and Michael Schaeffer. It now has partnerships with the fitness brand CrossFit, the PGA Tour, and the NFL Combine.

Sources

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