Well-known Kansas City, Kan., food manufacturing company Original Juan Specialty Foods recently announced its acquisition by Spicin Foods Inc.
Original Juan was founded in 1998 by Joe Polo. Polo capitalized on manufacturing specialty foods for 13 different brands, creating 150 products that include specialty sauces, snacks, salsas and dips. Recognizable labels in the Kansas City Market include Pain is Good salsas and Cowtown barbecue sauces, among others.
In addition to food manufacturing, Original Juan also provides high-quality co-pack and private label services to a distribution network throughout the U.S. and more than 20 international countries.
The company was a Thinking Bigger Business 25 Under 25 honoree in 2003.
Under the representation of Dan Loiacono, managing director with DLA Business Performance Advisors, Polo and his wife, Christine, decided to prepare for an eventual exit in 2010, Loiacono said. The Polos began the process in 2016, and in September 2017, they officially went to market with Loiacono’s consultation.
“Joe and Christine Polo had been preparing in advance for the eventual transition of ownership to maximize the value, attract the best buyer profile, and reduce the taxable impact,” Loiacono said.
Joe Polo unexpectedly passed away in October 2017, leaving behind his wife and two teenage daughters. Christine Polo worked directly with DLA to finalize details of the sale.
‘Targeted approach’
DLA researched the food manufacturing industry to identify acquisition trends in hopes of identifying an ideal candidate. Loiacono and the Polos reached out to an initial list of 250 potential buyers and investors active in the industry.
“This targeted approach to buyer identification is different from a general confidential marketing process typically used in a ‘business broker,’” Loiacono said. “DLA considers this an essential step to engaging strategic buyers and maximizing value.”
The company was fortunate to receive multiple offers and settled with Spicin Foods. Loiacono said Spicin Foods was a perfect match with its shared family-oriented values and commitment to keeping the Original Juan team in place.
“Joe and Christine Polo built a great business with a talented group of dedicated employees,” said Scott Morse, CEO of Spicin Foods. “I am honored to have had the opportunity to acquire Original Juan and plan to invest additional capital into the company to provide for additional product offerings and support future growth potential, never forgetting that the secret to success is in the unique flavors and high quality of the sauces we produce.”
Morse also is owner and CEO of Snowbird Environmental Systems Corp. in Jacksonville, Fla., a defense contractor that designs and manufactures severe duty environmental control units (“ECUs”) for mobile military applications. Spicin Foods is a new venture for Morse.
Of the sale, Christine Polo said, “We are happy to be able to hand the company over to someone that we feel will continue the strong family-oriented culture and hand-crafted quality standards.”
