Investments

Portfolio Companies

Lakeview Farms, Inc., headquartered in Delphos, Ohio, manufactures and distributes a comprehensive line of dessert products, sour cream, and sour cream- and vegetable oil-based dips under the Lakeview Farms, Real Desserts®, Winky®, Luisa’s®, Margarita’s, Señor Rico®, Angelica’s, and Hispania Foods brand names, as well as various store brands. Lakeview Farms sells to supermarkets, food service, convenience stores and warehouse clubs and operates manufacturing facilities in Ohio, Wisconsin and California. In August 2011, Sequel sold its investment in the company. For more information about Lakeview Farms, please visit www.lakeviewfarms.com.

W.L. Plastics Corporation, headquartered in Ft. Worth, Texas, manufactures and distributes high-density polyethylene pressure pipe for applications primarily in the oil and gas, potable water, sewer, irrigation, mining, landfill and industrial markets. WL offers a broad product line that includes both large and small diameter pipe. The Company operates manufacturing plants in Wyoming, Utah, Texas, Kentucky and Alberta, Canada. For more information about WL Plastics, please visit www.wlplastics.com.

21st Century Grain Processing, headquartered in Kansas City, Missouri, operates as a leading specialty grain-based ingredient manufacturer in North America, supplying whole grain ingredients for consumer products to the granola bar, cereal, baking and snack food industries. The company operates a 225 metric ton per day flour mill and corn processing operation near Amarillo, Texas and a 295 metric ton per day oat milling and customized oat ingredient processing facility in South Sioux City, Nebraska. In August 2010, the company was purchased by Viterra, Inc. (VT:CN), a publicly traded, global food ingredients company based in Canada. For more information about 21st Century, please visit www.21stcenturygrain.com.

Homeowners of America Insurance Company is a Texas-based property and casualty insurance company that specializes in residential property coverage for homeowners throughout Texas and Oklahoma, and private passenger auto coverage for homeowners in various regions of Texas. For more information about Homeowners, please visit www.hoaic.com.

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Previous Transactions

Prior to founding or joining Sequel, the principals of Sequel were actively involved in the following transactions.

Reddy Ice was acquired in 1988 by Kaminski Engles Capital Corporation and management. From 1988 to 1998, Reddy Ice acquired over 50 smaller regional ice companies, creating the largest packaged ice manufacturer and distributor in the United States, with sales in excess of $100 million.

Suiza Dairy, the largest processor and distributor of milk in Puerto Rico, with sales of approximately $180 million, was acquired by Engles Management Corporation in 1993. Suiza Dairy also processed and distributed fruit based drinks and operated a plastic blow-molding manufacturing facility. Suiza Dairy was subsequently acquired by predecessors of Dean Foods Company.

Velda Farms was the second largest processor and distributor of milk in Florida with sales of approximately $125 million. Velda also manufactured and distributed ice cream, fruit drinks, and various other products under its brand name and various store brands. Velda Farms was acquired by Engles Management in 1994 and was subsequently acquired by predecessors of Dean Foods Company.

In 1997, predecessors of Dean Foods acquired Garelick Farms, a leading processor of milk and dairy products in New England, and Franklin Plastics, a plastic blow-molding manufacturer with manufacturing facilities in Texas and in multiple states east of the Mississippi River. At the time of the acquisition, the companies had combined revenues of approximately $400 million.

In 1997, the predecessor of Dean Foods acquired Morningstar Foods, a publicly traded company, through a stock-for-stock transaction valued at $750 million. Morningstar Foods manufactured and sold nationally branded products, including International Delight®, Second Nature Eggs®, Mocha Mix®, and Naturally Yours® sour cream, as well as a variety of private label food products.

In 2008, Dean Foods acquired Friendship Dairies, a leading manufacturer of cultured dairy products based in upstate New York with sales in excess of $130 million. Friendship Dairies’ products include cottage cheese, sour cream, and yogurt.

White Wave Foods, founded in 1977 in Boulder, Colorado, became the largest producer and marketer of soymilk products in the United States, with products sold under the Silk® brand. After making an initial minority investment, Dean Foods acquired all of the outstanding interests in White Wave Foods in 2002.

Horizon Organic was founded in Boulder, Colorado in 1991. Horizon Organic established two certified organic dairy farming operations and the first national organic dairy brand. After making an initial minority investment in 1998, Dean Foods acquired all of the outstanding equity interests in Horizon Organic in 2004.

During their tenure at Dean Foods and its affiliates, principals of Sequel were involved in the acquisition of well over 100 manufacturing and distribution companies in the food and beverage industries, including over 50 ice companies, 50 dairy processing companies, and 16 plastic bottle operations, all with an enterprise value in excess of $8 billion. They were also involved in eight divestitures, with an aggregate value of approximately $1.4 billion, and multiple debt and equity offerings.

“Sequel’s principals have a thoughtful approach to negotiating and managing complex situations. Their years of transactional and industry experience have taught them how to build consensus and get the right outcomes… they add value at every step of the process”.

Mike Dahl
Board Member and Investor, WL Plastics