Sentinel and management acquire NorSun Food Group in a transaction



NEW YORK, November 29, 1999 - Sentinel Capital Partners II, LP, in partnership with company management, has acquired NorSun Food Group, LLC in a transaction valued at $43 million. Sentinel originated and sponsored the acquisition, arranged the debt and provided equity financing. Additional details of the transaction were not disclosed.

NorSun, located in Cincinnati, Ohio, is a leading supplier of specialty food ingredients to large packaged food companies and restaurant chains. The company has a leading share of the industrial Individually Quick Frozen ("IQF") roasted and whole baked potato market and has grown rapidly in terms of profit and revenue over the past several years. Customers such as Nestle, ConAgra, Pillsbury and Campbell Soup incorporate NorSun's ingredients into frozen entrees or soups. NorSun owns specialty processing plants in Fort Kent, Maine, and Rexbug, Idaho and markets its products under the NorSun trade name.

NorSun created the IQF roasted potato market and developed the roasting process. The company also develops proprietary flavors and processes for its customers. NorSun's growth is being driven by: expansion of the Home Meal Replacement category; increased outsourcing by large branded food companies; the introduction and early acceptance of NorSun's specialized food ingredients in restaurant and supermarket channels; healthy eating trends (NorSun's products are fat free); and growth in the roasted/flame broiled vegetable category.