Prospect Partners and Management Acquire Leading Greek Food Company
Kronos Foods, Inc. to Focus on Developing New Products and Deepening Customer Relationships
CHICAGO, ILL.—December 6, 2004: Prospect Partners, LLC and management are proud to announce the formation of Kronos Foods, Inc. to acquire Kronos Products, Inc. and its affiliated distribution company from a group of shareholders led by CM Equity Partners of New York, NY. Chicago-based Kronos is the nation's leading manufacturer of gyros meat, a leading producer of pita bread, tzatziki sauce and other Greek foods and a specialty foodservice distributor to local retail outlets as well as to restaurants, hospitals, businesses, schools and universities.
Founded in 1975, Kronos began as a small purveyor in Chicago's Fulton Street market district. It has since, through product innovation and strategic distribution, become a leader in Greek and Mediterranean foods with a complete line of gyros products, 11 varieties of pita bread and specialty items such as spanakopita, traditional Greek desserts and imported products.
"Over the years, Kronos has built a strong identity and brand among consumers and its core customer base with the highest-quality authentic foods," says William V. Glastris, Jr., a Principal at Prospect Partners. "We believe that Kronos can continue to serve and strengthen its traditional heritage while taking advantage of significant opportunities to grow through new product development, new channels and select acquisitions."
Mr. Glastris adds, "The company is a great example of the small niche leaders in which Prospect seeks to invest."
For Kronos, the acquisition was led by the existing management team including President and CEO Bruce Williamson and T. Patrick Costello, Peggy Schreiber and Janet Caldwell. The management team has worked together in various capacities for more than 20 years and has over 60 years of industry experience.
"We are thrilled with the opportunity to take Kronos to the next level and are fortunate to have the backing of Prospect Partners, a firm with both capital resources and a unique understanding of our market," says Mr. Williamson of Kronos.
Prospect Partners' Mr. Glastris will serve as Chairman of Kronos Food, Inc.'s Board of Directors; Vice President Suken N. Shah will serve as a Director.
For Prospect Partners, the acquisition of Kronos is the first platform of the $165 million Prospect Partners II, L.P., the company's second private equity fund, formed earlier this year.
Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its founding in 1998, Prospect Partners has invested in more than 40 leading companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.