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Shore Chases Add-Ons for Food Platforms in Latest Fund

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Published: September 26th, 2022
The microcap investor, which recently closed its second food and beverage fund, is on the hunt for add-ons for the two platforms in the vehicle.

Chicago-based Shore Capital Partners LLC is actively chasing add-ons for the platforms in its latest food fund.

The firm, which closed its $290 million second food and beverage fund last week, is targeting high-quality, low-cost food, beverage, ingredients and flavors manufacturers, distributors and business-to-business services companies, Shore managing partner Justin Ishbia told The Deal.

The firm has invested in two companies through the fund so far — Chino, Calif.-based natural, artificial and organic flavors business OC Flavors in April and Chicago-based Asian- and Latino-focused meat supplier to grocers and restaurants Moesle Meat in May.

Shore Capital typically invests in and combines microcap companies to build out larger platforms that are attractive to either a strategic buyer or a middle-market private equity fund. The firm, which started out as a healthcare investor before branching out into food and beverage, has completed 800 add-on acquisitions since its inception in 2009.

“Our goal is to make small companies grow bigger, stronger and faster,” Ishbia said.

Shore’s add-on strategy usually involves buying up companies making similar products in a new region to expand geographically or acquiring complementary products. The firm typically targets companies with $1 million to $10 million in Ebitda and $5 million to $100 million in revenue for both platforms and add-ons.

Editor’s note: The original, full version of this article was published July 6, 2022, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

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