Salty snacks company Benestar Brands, which operates across the U.S. and Mexico, has acquired premium pork rinds producer 4505 Meats. Insiders estimate the deal size is between $50 million to $100 million.
4505 Meats was founded in 2009 by San Francisco-based butcher and chef Ryan Farr as a way to utilize discarded chicharrones, and its keto and paleo-certified portfolio has since expanded to include sausage snacks. The company was previously backed by Encore Consumer Capital, CircleUp, and other undisclosed investors.
CEO Erik Havlick will continue to lead the team upon the completion of the transaction. 4505 Meats is said to have generated approximately $40 million in revenue as of 2021.
The transaction signals continued investor interest in the global meat snacks industry that’s projected to worth $14.3 billion by 2027, according to Research and Markets, led by incumbents, such as Hormel Foods, Conagra, and Jack Links.
Notable deals in the space include Hershey’s $235.45 million of Krave jerky at a 6.54x multiple in 2015, although it was sold back to original owner Sonoma Brands later; General Mills’ $100 million acquisition of EPIC Provisions at a 5x multiple in 2016; Conagra’s $217.6 million acquisition of Thanasi Foods in 2017; Canadian conglomerate Premium Brands’ acquisition of Oberto in 2018; and most recently, biltong maker Stryve Foods was valued at $170 million after going public through a SPAC deal.
Other meat snacks producers are also touting premium attributes to better compete in the space with Monogram Capital-backed Country Archer Provisions recently branching out into the zero sugar and plant-based jerky sectors, while grass-fed beef jerky brand Chomps closing $80 million in a recent PE deal that values the company at $300 million.
