Sadler’s Acquired by Private Investment Firms

November, 2007

Dallas, Texas-based private investment firms, Wholesome Holdings Group LLC and Brazos Private Equity Partners LLC, have acquired Sadler’s Bar-B-Que Sales Ltd. as one of the first transactions under their previously announced food and beverage investment initiative. Financial terms of the transactions were not disclosed.

Sadler’s Bar-B-Que Sales, based in Henderson, Texas, is a producer of smoked meats that are slow-cooked using traditional pit smoking with natural hardwood coals. Red Sadler founded the company in 1948 which started as a 50-square-foot drive-up bar-b-que stand. The company, whose leadership team includes several members of the Sadler family, now operates a 200,000-square-foot USDA-certified processing facility and employs more than 350 people. Sadler’s branded products include brisket, chopped/shredded products, ribs and other barbeque-related food items. These products are distributed nationwide through several major grocery retailers, foodservice distributors, national chain restaurants and other branded food processors.

Terry O’Brien, founder and head of Wholesome Holdings, will assume the CEO position at Sadler’s. Mr. O’Brien has served in executive capacities at Barry Callebaut, Dean Foods and Frito-Lay. According to Mr. O’Brien, Sadler’s will retain their current offices and manufacturing facilities. Current management, including members of the Sadler family, will stay in place.

Regarding Sadler’s, Mr. O’Brien says “we are very enthusiastic about expanding the brand nationally in key niches, and we are very bullish about being able to develop various new products that leverage the authenticity of the 16-hour premium pit smoking that the Sadler’s have done for over 59 years.”

Concerning possible acquisitions of other food businesses in the near future, Mr. O’Brien says, “We are very active, both in terms of businesses that have synergies with this as well as looking at other select areas of the food and beverage business.”