Prospect Partners Expands Plastic Disposable Foodservice Products Holding With Add-On of Foam Cup Manufacturer
Broadening Product Line and Reach, Spirit Foodservice Products Acquires Master Containers
CHICAGO, ILL.—July 9, 2007: Lower-middle-market private equity firm Prospect Partners, LLC has announced the acquisition of Master Containers, Inc. of Mulberry, Florida by portfolio company Spirit Foodservice Products, Inc., a manufacturer and marketer
of specialty stock and custom plastic disposable serving products.
Spirit, best known for its custom swizzle sticks, is the market leader in the stirrers, picks and specialty straws industries. Its products, which also include promotional plastic cups and servingware, are sold worldwide through foodservice and specialty advertising distributors,
restaurant chains, casinos, nightclubs and bars.
Founded in 1969, Master Containers is a manufacturer of a broad line of stock and custom foam cups, lids and containers, from 1.25-ounce espresso cups to 64-ounce wide-body travel cups to custom-printed holiday cups and bait containers. Its products are distributed throughout the southeastern United States and Puerto Rico through foodservice distributors as well as through retail chain convenience stores, supermarkets and warehouses.
"Master Containers is a growing, niche company whose foam product line strategically complements Spirit's plastic foodservice disposables portfolio," says David J. Choe, a Vice President at Prospect Partners. "Both companies now can provide customers with an expanded offering that naturally fits together — stirrers and straws with cups, for example — while reaching new accounts in new channels and new geographic markets."
Adds Spirit President and Chief Executive Officer Donald C. McCann: "What's more, through Spirit's specialized custom-printing capability, all products, whether plastic or foam, can become branded advertising vehicles for our customers. Imprinting is an inexpensive way to advertise but can deliver a significant impact on brand image and profitability."
Master Containers will remain a separate division of Spirit Foodservice Products and will continue to operate from its headquarters in Mulberry, Florida.
Spirit Foodservice Products continues to seek acquisitions of other companies involved in complementary foodservice disposables.
About Prospect Partners
Prospect Partners, LLC
of Chicago, Illinois is a leading lower-middle-market private equity firm, managing $270 million in two funds. Since its inception in 1998, Prospect Partners has focused on management-led
leveraged acquisitions of small niche leaders with revenues typically
between $10 million and $30 million; the firm has invested in approximately 65 companies across a wide variety of niche consumer, commercial, specialty
distribution and select service markets throughout the United States.