By Agnieszka Opalka
A leading producer of gourmet frozen treats, Nancy Mueller founded Nancy's Specialty Foods in 1977 when she wanted to capitalize on her personal success in creating delicious appetizers for family and friends at her celebrated parties. Today, Nancy's is the largest producer of frozen quiche products in the United States. Once a one woman operation serving the San Francisco Bay Area, Nancy's savory specialties are now produced by over 300 employees and are served at parties nationwide. Nancy's web site, a.k.a. "Party Planning Headquarters," is replete with sample menus, a party planning checklist, and a downloadable party planning guide.
Click here for her guide to parties-made-easy, a search engine to help find Nancy's must-have quiche and appetizers at the store nearest you, and a free subscription to the Quiche Club Gazette.
In September 2003, Kohlberg & Company, a private equity firm with offices in New York and California, completed a recapitalization of the company. In support of the transaction, American Capital Strategies, Ltd. (Nasdaq: ACAS) invested $15 million of senior subordinated debt. Management, together with Kohlberg & Co., retained their majority ownership position in the Company.
"American Capital is supporting the growth of a dominant market leader in all of its niches. Nancy's strong management, long term sole source supply relationships with top retailers, excellent reputation for high quality products and over 25 years experience in the industry form a solid basis for continued growth," said American Capital Principal John Thornton. "In addition to its leading position in the frozen quiche market, Nancy's has successfully leveraged its reputation to become a diversified producer of a variety of complimentary frozen appetizers and entr�es. Nancy's ability to be a low-cost producer stems, in part, from its custom-built, state-of-the-art manufacturing facility that incorporates an impressive array of automated processes, allowing the company to increase efficiencies, linespeeds and product quality."
Nancy's Specialty Foods, based in Newark, CA, originally started producing and selling petite and full-size quiche entr�es. Having experienced remarkable success, the company expanded its product line to include major product categories: Quiche Entr�es, Mini Quiche, Assorted Hors D'Oeuvers, including Mushroom Turnovers, Seafood Tartlets, and Cheese and Chocolate Souffl�s and Spirals, bite size sandwiches made from softened bread wrapped around deli meats, vegetables and herbed cream cheese. Customers include leading club stores, conventional grocers and food service providers. Nancy's ability to work with its top customers to improve existing products and develop new products has enabled it to remain the sole source supplier to many of its customers and maintain strong, long lasting relationships with its key customers, some for as many as over 20 years. Pictured here is Nancy's Petite Quiche, an easy and convenient snack or appetizer, available in four mouth-watering flavors, Lorraine, Florentine, Classic French and Monterey.
After years of exceptionally strong growth, Nancy's moved to a new, state-of-the-art, custom built 85,000 square foot manufacturing facility in Newark, CA. The USDA/FDA-certified facility was specifically designed for the unique processing and handling needs of frozen foods and is equipped with modern storage equipment, efficient bulk material handling equipment, in-house packaging capabilities and an enterprise-wide information system. Pictured at right are Nancy's Pecan Tartlets, a sweet dessert ready to eat cold or heated up.
Nancy's competes in the large, highly fragmented and steadily growing frozen appetizers and snacks and frozen entr�es segments of the $26 billion frozen foods industry. Nancy's is the clear market leader in the $65 million quiche entr�es and appetizers market, with dominant share in the retail and club distribution channels. While the company competes with food companies that provide a wide range of frozen appetizers, it faces limited or no competition in its niches. Nancy's has captured a dominant market share in the frozen quiche entr�es and appetizers segment, faces no competition in the frozen spirals segment and faces limited direct competition in all of its product segments.
Nancy's joins American Capital's portfolio of more than 80 middle-market companies, resulting in investments of more than $1.8 billion.
For more information about American Capital's portfolio click here.
Alongside American Capital's investment, GE Capital provided a revolving credit facility and a senior term loan.
With a strong brand name, delicious product offering, and low cost production advantages, Nancy's Specialty Foods is going to continue cooking up a storm for years to come.
