Northwood Foods

Finding partner to help transition the company from first generation to second generation leadership.

Northwood Foods has been acquired by Spell Capital

Founded in 1998 and based in Northwood, Iowa, Northwood Foods is one of the nation’s largest independent pork boning and fabrication operations, processing more than 500,000 pounds of fresh pork daily. Northwood products are sold direct to many of the nation’s premier pork processors. It has built and maintained long-standing customer relations based on its quality products and reliable service. The Company’s team of over 150 employees operates out of a 40,000 square foot facility.

Situation Overview

Founder and CEO Brian Burkard was looking for a partner who would provide him with liquidity and enable him to slowly transaction leadership to his son. Northwood Foods received an unsolicited offer prior to engaging Vermillion.

You exceeded my expectations. Congratulations on a job well done. Thank you! – Brian Burkhard, Owner & CEO, Northwood Foods

M&A Transaction Process

Vermillion worked closely with Northwood Foods for several months to prepare the Company for sale before going to market. Vermillion advised Northwood Foods on several strategic initiatives including:

  • Advised Northwood Foods on engaging an accounting firm to prepare GAAP-based financial statements to support the Company with buyer financial due diligence.
  • Advised Northwood Foods on analyzing its financials to identify add-backs to EBITDA to ensure the owners were getting full credit with respect to valuation from buyers.
  • Advised the Company’s management team on highly critical meetings with buyers and ensured they were prepared for all areas that buyers would be focused on.
Prospective Buyers Signed NDAs
First Round Bids
%
Premium Over Next Highest Bidder

Result

Through a targeted marketing process, Vermillion spoke with 45 prospective buyers and secured 8 first round bids. Northwood Foods was sold to Spell Capital for 42% more than the unsolicited offer it received prior to engaging Vermillion and at a 22% premium to the next highest bidder.

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