Transaction Overview
- Hennepin Partners represented the Cornerstone Foodservice Group, a portfolio company of ShoreView Industries, in its sale to CFS Brands, a portfolio company of TJC.
- The Company is a premier provider of innovative, design-forward commercial foodservice equipment, bakeware, and accessories, supporting operations in both front- and back-of-house settings.
- Cornerstone maintains a robust portfolio of five premium brands specializing in small equipment and pans & bakeware, serving global hotel chains, pizza chains, stadiums and arenas, restaurants, institutional foodservice, bakeries, grocery stores, and convenience-store markets.
- The Company’s product portfolio is highly complementary to CFS’s existing commercial foodservice equipment offerings, and will allow CFS to accelerate growth in priority end-markets while gaining access to blue-chip end-users in the hotel, restaurant, pizza, and institutional foodservice segments.
- Cornerstone is CFS’s 12th add-on acquisition under TJC’s ownership.
Drivers of Interest
- Multi-brand, multi-channel model combines niche manufacturing, sourcing, and light assembly to meet the evolving needs of end-users in the commercial foodservice equipment sector.
- Differentiated, customer-centric go-to-market strategy built on strong relationships with blue-chip end-users and reinforced by long-standing partnerships with leading commercial foodservice equipment dealers.
- Favorable industry tailwinds include rising consumer demand for out-of-home dining, growing preferences for fresh food, an increased emphasis on food safety, and ongoing innovations in modern commercial kitchen design.
- Strong platform evolution and momentum in high margin product categories such as induction and ventless cooking support a differentiated margin profile with minimal capital expenditure requirements.
- Experienced management team and a well-established acquisition platform with a demonstrated history of growth through both organic initiatives and strategic inorganic M&A.
- Multi-faceted growth strategy fueled by new unit expansion, replacement and upgrades, modern kitchen and menu innovations, increasing adoption of induction cooking, growth in tabletop and buffet, cross-selling of newly acquired brands, and opportunities for further channel and end market expansion.