Clearspring announces acquisition of a majority interest in Regal Confections

By November 4, 2020 Insights

This release originally appeared on Newswire.ca

MONTREALOct. 30, 2020 /CNW/ – Clearspring Capital Partners (“Clearspring ”), one of Canada’s leading private equity firms, is proud to announce the acquisition by Clearspring Fund III of a majority interest in Regal Confections (“Regal”), headquartered in Laval, Quebec.

The company was founded in Montreal 58 years ago and it has grown to become the authority in confectionery and premium chocolate products in Canada, representing the brands of sweet treats that we all know and love. During peak periods, Regal employs more than 300 people in 4 distribution centres, 1 co-packing operation and 1 production plant.

“Regal is the proud custodian of world-renowned confectionery and gourmet brands that Canadians recognize instantly. We have been partnering with leading manufacturers and retailers and contributing to their success for nearly 60 years” says Joe Neufeld, Chairman Emeritus of Regal Confections.

“When Walter Neufeld founded Regal Confections in 1962, he knew that consumers instinctively respond to quality and consistency. In keeping with these principles, Clearspring Capital Partners is a perfect fit for us” says Hani Basile, President and CEO of Regal Confections.

All existing shareholders (including Mr. Walter Mueller) will remain with Regal. The company will pursue its growth strategy with capital and support from Clearspring, which has built its reputation on helping market leaders reach greater heights.

“Numerous growth opportunities lie ahead for Regal Confections. Clearspring is proud to partner with CEO Hani Basile and his team. We look forward to investing in people and in infrastructure to strengthen the portfolio of products and brands, and bolstering Regal’s national leadership as an independent value-added distributor in the candy, chocolate and gourmet foods segments” says Milap Choksey, Principal at Clearspring Capital Partners.

“We are impressed with the track record of growth at Regal, their enduring brand partner and customer relationships and the company’s ability to build and to maintain brand presence in a highly competitive marketplace. Regal and Clearspring share the same values and we are confident that this partnership will benefit customers, suppliers and employees alike” says Marie-Claude Boisvert, Partner at Clearspring Capital Partners.

The acquisition was made possible by Investissement Québec’s consulting services and financial support. “By providing our support for this acquisition, we are helping a major player in the confectionery sector pursue its manufacturing activities here in Québec, while contributing to supporting its growth strategy and developing its export initiatives” says Guy LeBlanc, President and CEO of Investissement Québec.

About Clearspring Capital Partners
Clearspring Capital Partners is a leading Canadian private equity firm that invests in and acquires medium-sized companies through buyouts, growth and acquisition financings, going private transactions, industry consolidations, recapitalizations and other types of transactions. Clearspring has raised nearly 600 million dollars in capital since it was founded in 2002.

Clearspring focuses on established and stable industries, such as the food industry, and companies with strong market positions and skilled management teams. The Clearspring team works out of its offices in Toronto and Montreal in close collaboration with the management teams of its portfolio companies in order to ensure the creation of added value.

For more information, visit www.cscap.ca

About Regal Confections
Regal Confections, known industry-wide as “Your Candy Experts”, was founded in Montreal in 1962. It is one of the leading distributors of global candy and chocolate confectionery brands in the nation. Regal manufactures peanut-free and nut-free chocolate products in Quebec under the “Jean-Talon” (CJT) brand (as well as private label and licensed products in Canada and the US). Regal distributes fine imported and domestic gourmet foods under the “Euro-Excellence” (EEX) brand and it creates gift baskets for leading retailers under the “Sweet Expressions” brand. During peak periods, the company employs more than 300 people at 6 locations. Regal sells through all major distribution channels in Canada (including club, grocery, drugstores, mass merchants, convenience stores, dollar stores, and specialty independent stores).

For more information, visit www.regalcandy.com

About Investissement Québec
Investissement Québec’s mission is to play an active role in Québec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists businesses with export activities.

For more information, visit www.investquebec.com

SOURCE Clearspring Capital Partners

For further information: To schedule an interview, obtain a visual or more information: Valérie Lavoie, Massy Forget Langlois Public Relations, vlavoie@mflrp.ca, (438) 885-9135