HOUSTON–(BUSINESS WIRE)–Stellus Capital Management, LLC, a leader in middle market direct lending, announced today that its affiliates provided senior debt financing and an equity co-investment in support of Bansk Group’s acquisition of Red’s All Natural, a rapidly growing brand of clean-label frozen burritos and breakfast sandwiches in the U.S.
Founded in 2009, Red’s is a better-tasting clean-label disruptor in the frozen burrito and breakfast sandwich category. It offers more than 20 different high quality frozen burritos and breakfast sandwiches. Its products include simple ingredients with no artificial flavors, colors, or preservatives. Red’s products are developed by an industry leading chef and hand-built in small batches at its in-house manufacturing facility in North Sioux City, South Dakota, ensuring consistent quality, superior texture, and enhanced flavor for the ideal consumer experience. Red’s products are available at retailers across the U.S., including at Sprouts, Albertsons, Costco, Kroger, Publix, Target, and Walmart.
“We are excited to partner with the Red’s team and support their next phase of growth,” said Brian O’Connor, Senior Partner and Chief Investment Officer at Bansk. “With today’s consumers increasingly focused on clean, convenient eating options that offer dynamic flavor profiles, the frozen food market is ripe for disruption and Red’s is well positioned to capitalize on significant growth opportunities ahead. As longtime investors in the food and beverage space, we believe brands that achieve superior taste coupled with clean, nutritious ingredients and convenient formats can achieve sustainable long-term brand differentiation, ultimately resulting in winning market share.”
“We appreciate Stellus’ support of the transaction and their ability to provide a flexible financing structure enabling us to expand the Red’s business. We look forward to growing our partnership with Stellus going forward,” said Ciaran Bermingham, Vice President at Bansk.
Colin Baker, Managing Director at Stellus, added, “We appreciate the opportunity to partner with the Bansk and Red’s teams. Red’s is a leading brand in the clean-label frozen food category, which should be further enhanced through Bansk’s expertise in the food and beverage sector.”
About Stellus Capital Management
Stellus was founded in 2012 and formed in conjunction with the spin-out of the Direct Capital Unit of the D. E. Shaw group. Stellus’ senior team helped create the Direct Capital Unit in 2004 and has been investing together in the middle market for 18 years. Since 2004, the Stellus team has deployed over $8 billion into more than 350 middle market companies, developing a broad and deep expertise in this segment of the private investing market. Stellus currently has approximately $2.6 billion in assets under management, with offices in Houston, TX, the Washington, D.C. area, and Charlotte, NC. Learn more at https://www.stelluscapital.com.
