Butterfly Equity and Graham Partners LP have invested in flavors maker Custom Flavors.

San Clemente, Calif.-based Custom Flavors didn’t disclose the financial terms of the transaction in a Wednesday, July 22, statement but said it will retain CEO Alex Wendling, who will continue to lead the company with support from co-founders Mike Wendling and Steve Bishop.

The Deal reported in June that the company was working with Hexagon Capital Alliance LLC to run an auction process. The Deal said Custom Flavors generates around $20 million of Ebitda.

Custom Flavors said the partnership will provide the company with resources to expand its scale, build its team and invest in its facilities, resulting in shorter expected lead times, expanded capacity and the ability to serve a broader range of customers.

Butterfly and Graham have also launched a flavor investment platform for Custom as well as Target Flavors, a full-service flavor company serving the beverage, dairy, pharmaceutical and bakery industries. Graham backed family-owned Target in November.

Founded in 2005, Custom Flavors creates flavors for bakery, confectionery, snack foods, supplements, beverages and dairy products, among other applications.

Mike Wendling transitioned from his role as CEO in February while his son and former company president, Alex, took over as CEO. Mike Wendling remains chairman. Custom Flavors also brought in Scott Nadison, who previously was president and CEO of family-owned flavors manufacturer Mother Murphy’s Flavors and president of sales at International Flavors & Fragrances Inc. (IFF), as president.

Beverly Hills, Calif.-based Butterfly focuses on the food and beverage industry, as well as related production and inputs and business services companies. Its Rise Baking Co. acquired Jimmy’s Gourmet Bakery for an undisclosed amount in June.

CEO and co-founder Adam Waglay recently discussed the private equity firm’s path to becoming North America’s largest food-focused investment platform on Behind the Buyouts.

Newtown Square, Pa.-based Graham Partners focuses on investing in technology-driven companies in North America within the advanced manufacturing and technology-enabled services and software sectors. It typically invests in companies with $10 million to $50 million in Ebitda.

Last July, Graham announced the final closing of its sixth buyout fund, Graham Partners VI, with more than $1.8 billion in total commitments.

In the food products sector, its Tulkoff Food Products Inc. in March acquired PE-backed Celtrade Canada Inc., expanding its footprint in North America and creating a larger platform for custom sauces, condiments and flavor solutions.

Butterfly and Graham looked to Deloitte LLP for financial advice.

Marni Lerner, Keegan T. Lopez and Mark Myott of Simpson Thacher & Bartlett LLP and Dechert LLP provided counsel. Butterfly partner Aaron Kirkbride and Graham managing partner Andrew Snyder worked on the deal internally.

Alex Wendling and president Scott Nadison were on the deal at Custom Flavors, which turned to Hexagon Capital for financial advice and TALG Ltd. for counsel.