Snack Maker Shearer’s Foods Explore Potential $3 Billion Sale

Shearer’s Foods, a snack maker backed by Ontario Teachers’ Pension Plan, is exploring a sale that could fetch about $3 billion including debt, according to people with knowledge of the matter.

(Bloomberg) — Shearer’s Foods, a snack maker backed by Ontario Teachers’ Pension Plan, is exploring a sale that could fetch about $3 billion including debt, according to people with knowledge of the matter.

The company is working with a financial adviser on the potential transaction, the people said, asking not to be identified discussing private information. The company generates more than $250 million a year in earnings before interest, tax, depreciation and amortization, the people said.

A final decision on pursuing a sale hasn’t been made and the pension fund could still decide to keep the asset, the people added. 

A representative for Ontario Teachers’ declined to comment. A spokesperson for Shearer’s didn’t immediately respond to a request for comment. 

The Massilion, Ohio-based company, founded in the early 1990s, manufactures and distributes potato chips, cheese puffs, cookies and crackers. It owns about a dozen production facilities in the US. 

Ontario Teachers’ acquired a majority stake in the snack-maker in 2015 at an undisclosed price, according to a statement at the time. Private equity firm Wind Point Partners retained a small interest.

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