Key Takeaways
- • Great Lakes Potato Chips was acquired by a partnership of Chicago-based private equity firms LaSalle Capital and Lightspring Capital, with Greenwich Capital Group serving as exclusive financial advisor to the chip maker on the transaction.
- • The company processes over 80,000 pounds of potatoes per week with a product line spanning seven permanent flavors and over 30 full-time employees, demonstrating significant operational scale in the regional snack food market.
- • Great Lakes Potato Chips received an $80,000 grant from the Michigan Department of Agriculture and Rural Development to fund facility expansion, with management expecting relocation to new production facilities within 12-14 months of announcement.
- • Revenue growth accelerated substantially from $60,000 in 2010 to approximately $4 million in 2017, reflecting strong market demand and operational execution prior to the private equity transaction.
- • The acquisition is positioned as a growth catalyst, with private equity backing enabling expanded distribution channels, product innovation, and operational scaling for the northern Michigan-based snack manufacturer.
Summary
Great Lakes Potato Chips, an iconic northern Michigan snack food manufacturer, has been acquired by a partnership of Chicago-based private equity investors LaSalle Capital and Lightspring Capital. Greenwich Capital Group LLC served as the company's exclusive financial advisor on the transaction. The acquisition represents a significant capital infusion for the business, with leadership indicating that private equity backing will accelerate growth initiatives across production capacity, distribution, and product development.
The company has demonstrated sustained revenue growth and operational expansion prior to the transaction. As of 2017, Great Lakes Potato Chips generated approximately $4 million in sales, representing a substantial increase from $60,000 in 2010. Current operations include processing over 80,000 pounds of potatoes per week with a workforce exceeding 30 full-time employees. The product portfolio has expanded to include seven permanent flavor varieties, positioning the company as a diversified regional player in the branded snack segment.
Capital investment in physical infrastructure has been supported by both private and public sources. The Michigan Department of Agriculture and Rural Development provided an $80,000 grant to fund facility expansion, with management projecting relocation to expanded production facilities within 12-14 months. This infrastructure upgrade, combined with private equity partnership, positions the company for meaningful capacity growth to meet rising consumer demand.
The transaction reflects broader appetite among middle-market private equity firms for established regional food brands with demonstrated growth trajectories and loyal customer bases. Legal representation was provided by Varnum, a Grand Rapids-based firm specializing in mergers and acquisitions and private equity transactions. The acquisition structure provides equity partners with both operational scale and growth optionality in the premium snack food category.
The company has demonstrated sustained revenue growth and operational expansion prior to the transaction. As of 2017, Great Lakes Potato Chips generated approximately $4 million in sales, representing a substantial increase from $60,000 in 2010. Current operations include processing over 80,000 pounds of potatoes per week with a workforce exceeding 30 full-time employees. The product portfolio has expanded to include seven permanent flavor varieties, positioning the company as a diversified regional player in the branded snack segment.
Capital investment in physical infrastructure has been supported by both private and public sources. The Michigan Department of Agriculture and Rural Development provided an $80,000 grant to fund facility expansion, with management projecting relocation to expanded production facilities within 12-14 months. This infrastructure upgrade, combined with private equity partnership, positions the company for meaningful capacity growth to meet rising consumer demand.
The transaction reflects broader appetite among middle-market private equity firms for established regional food brands with demonstrated growth trajectories and loyal customer bases. Legal representation was provided by Varnum, a Grand Rapids-based firm specializing in mergers and acquisitions and private equity transactions. The acquisition structure provides equity partners with both operational scale and growth optionality in the premium snack food category.
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