Abigail Somerville
NEW YORK (Reuters) – Bragg Live Food Products, backed by celebrities Katy Perry and Orlando Bloom, is exploring a sale that could value it at more than $500 million including debt, people familiar with the matter said.
The Santa Barbara, California-based company, which also counts investment firm Swander Pace Capital among its investors, is working with Bank of America to solicit interest from potential buyers, including private equity firms, the people said, asking not to be identified discussing the matter.
Swander Pace and Bank of America declined to comment. Mr. Bragg did not respond to a request for comment.
Founded in 1912 by Paul Bragg, the company is known for its apple cider vinegar products, as well as salad dressings, seasoning blends, olive oils, beverages and other food ingredients.
Mr Paul's adopted daughter, Patricia Bragg, led the business for 65 years before selling it in 2019 to Mr Perry, Mr Bloom and other investors including Dragoneer Investment Group and Presto Juicery founder Hayden Slater.
Bragg's products are sold through supermarkets, e-commerce retailers and natural foods stores throughout the United States and other countries.
The company's owners expect to ask for a valuation for Bragg equal to at least 10 times the company's earnings before interest, taxes, depreciation and amortization of about $50 million, the people said.
The food ingredients sector has been an active area of dealmaking in recent months, with private equity firm Butterfly Equity considering a sale of Chosen Foods Inc. and Falfurrias Capital in the process of selling Sauer Brands Inc., Reuters previously reported.
(Reporting by Abigail Somerville in New York; Editing by Anirban Sen and Will Dunham)
