Brynwood Partners recently reached a definitive agreement to sell Harvest Hill Beverage Company to Castillo Hermanos. Centerview Capital will make an investment alongside Castillo Hermanos. The terms and conditions of the transaction will not be disclosed. The transaction is subject to customary closing conditions and receipt of regulatory approvals.

Harvest Hill was established in 2014 when Brynwood Partners acquired Juicy Juice from Nestlé USA, Inc. Harvest Hill was staffed with a management team that identified, acquired and integrated a series of add-ons, including American Beverage Corporation (acquired in 2015 from Wessanen); Sunny Delight Beverages, Co. (acquired in 2016 from JW Childs); and Nutrament (acquired in 2016 from Nestlé). Harvest Hill created a portfolio of beverage brands, including Juicy Juice, SunnyD, Little Hugs, Fruit2O and Nutrament. Harvest Hill also owns the adult beverage brands Daily’s and SunnyD Vodka Seltzer, which are included in the transaction.

The company operates six manufacturing facilities across the U.S. Harvest Hill’s products are sold through all channels of distribution, with depth and breadth of account penetration with major retailers in the U.S.

The acquisition of Harvest Hill by Castillo Hermanos expands its U.S. presence and provides a platform to grow its existing U.S. business unit. Castillo Hermanos is collaborating with Centerview Capital, which will be a partner to help grow the U.S. beverage business.

“We are delighted to announce the sale of Harvest Hill, though it is a bittersweet moment, as it is sad to say goodbye to a company and brands that have meant so much to Brynwood Partners and me personally,” says Henk Hartong III, chair and CEO of Brynwood Partners. “The Harvest Hill sale will represent the largest transaction in Brynwood Partners’ 40-year history. We are grateful for the commitment from our limited partners and the confidence that they conveyed to us through the Harvest Hill investment period. Castillo Hermanos is a first-class company with a long family history and a passion for the beverage business. We are confident that they will continue to invest in and grow the Harvest Hill business.”

With more than 139 years of history, Castillo Hermanos has a presence in over 30 countries, where it continues to captivate consumers across its brands, including Gallo Beer (known as Famosa Beer in the U.S.), Del Frutal and Raptor Energy Drink. It is also a cereal producer in Central America.

Brynwood Partners had previously teamed up with Centerview Capital in 2010, when it divested a Brynwood Partners V L.P. portfolio company, Richelieu Foods.

“We are grateful to Castillo Hermanos and know that they will be great stewards of the business,” says Ian MacTaggart, vice chair of Brynwood Partners. “We have had a long relationship with Centerview Capital and thank Jim Kilts and his team for their work with Castillo Hermanos to bring this transaction together.”

Brynwood Partners is currently investing out of Brynwood Partners IX L.P. Brynwood IX, with $750 million of committed capital, was raised in 2023. Brynwood IX has made three investments, which are West Madison Foods, Miracapo Food Company and Hometown Food Company.

Harvest Hill was represented by Holland & Knight LLP on legal matters and did not engage investment-banking representation. Citi is serving as financial advisor to Castillo Hermanos and is lead arranger and bookrunner on the acquisition financing. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Castillo Hermanos.