Pittsburgh, Pennsylvania – Tecum Capital Partners II, L.P. (“Tecum”) is proud to announce its newest investment in DelGrosso Foods Inc. (“DelGrosso” or the “Company”). Tecum partnered with a local banking syndicate led by First Commonwealth Bank to provide debt financing to support the second- and third-generation leadership team in the Company’s next stage of growth. DelGrosso is a leader in the formulation and manufacturing of premium tomato-based sauces, including pasta sauces and salsas.
Founded in 1947, DelGrosso is the oldest family-owned manufacturer of pasta sauces in the United States. The Company specializes in the formulation and manufacture of branded, private label, and co-manufactured tomato-based sauces. The company excels in developing custom recipes and manufacturing high-quality products at high volumes for the largest domestic grocers and consumer packaged goods companies. DelGrosso currently operates a 130,000 square foot manufacturing facility located in Tipton, Pennsylvania, and is utilizing the growth investment to fund the conversion of a recently acquired 166,000 square foot vacant facility located in Antis Township, Pennsylvania. The expanded manufacturing space, which will include a new sauce manufacturing line, will allow the Company to more than double its production capacity. In addition to preserving 90+ jobs at the Company’s Tipton facility, the investment is anticipated to create over 50 new manufacturing jobs in Antis Township at the new facility.
“We’ve made numerous additions to our existing Tipton sauce plant over the decades, adding warehousing space and expanded production capacity where we could. In order to continue to grow, our only option at this point is to add a second facility,” said second-generation family member and CEO Joe DelGrosso. “It’s the largest step in the history of the family business since my parents packed those first cans of sauce over 70 years ago.”
“We have a highly dedicated, world-class workforce right here in Blair County that produces DelGrosso branded products for distribution nationally and internationally, packs private label (store brand) products for half of the top 20 grocers in America and produces sauce or salsa for several national brands. We are excited for the next step,” said third-generation family member and Chief Sales and Marketing Officer Michael DelGrosso.
Stephen Gurgovits, Jr., Managing Partner of Tecum, stated, “DelGrosso represents another opportunity to partner with a passionate and proven management team alongside an experienced senior lending syndicate right in our back yard. Further, we are very bullish on the co-manufacturing industry within durable food product categories around the country and we believe DelGrosso to be a world-class food co-manufacturer. In addition to supporting the management team, we could not be happier to have the ability to support regional job growth, as it is a core part of Tecum’s investment strategy.” Matt Harnett, Partner of Tecum, added, “The historical durability of the business, along with current organic growth initiatives and industry tailwinds gets the team excited. Tecum is thrilled to partner with DelGrosso in its next phase of growth.”
The Deal Team from Tecum consisted of Matt Harnett, Sean Edmonson, Ian Frazier, and Matt Sweet.
First Commonwealth Bank, S&T Bank, Tri-State Capital Bank, Somerset Trust Company, Reliance Bank, and Washington Financial Bank provided senior debt financing.
ABOUT TECUM CAPITAL
Tecum Capital Partners is an independent investment firm based in Pittsburgh, Pennsylvania. Tecum is a multi-strategy investor and is currently investing out of its second SBIC Fund. The investment team partners with independent sponsors, family offices, business owners seeking succession plans, and management teams to create shared success. Since 2006, Tecum’s investment professionals have invested over $750 million in 100+ platform and add-on acquisitions. Tecum specializes in growth-oriented, middle market companies across the broader high-value manufacturing, value-added distribution, and business service sectors, with a focus on businesses with EBITDA greater than $3 million. Tecum seeks to invest $5 million to $20 million in potential portfolio companies. For more information, please visit www.tecum.com.
ABOUT DELGROSSO FOODS INC.
Founded in 1947 and headquartered in Tipton, Pennsylvania, DelGrosso Foods Inc. specializes in the formulation and manufacture of high-quality tomato-based sauces including pasta sauces, and salsas. The Company manufactures and markets its branded sauces under the “DelGrosso” and “La Famiglia DelGrosso” labels and manufactures private-label and co-manufactured sauces on behalf some of the largest grocers and consumer packaged goods companies in the United States. For more information, please visit www.delgrossofoods.com.