29 Jun Takenaka Partners Advises Somi Foods, Inc. on its Acquisition of Cauldron Broths
Takenaka Partners LLC (Los Angeles, CA) acted as the exclusive financial advisor for Somi Foods, Inc.’s (“Somi’s”) acquisition of Cauldron Broths, a manufacturer of made-from-scratch certified organic broths. Through its Greenfield Research process, Takenaka Partners identified Cauldron Broths as the best strategic fit for Somi. The transaction closed in August 2019.
Somi, based in Japan with US offices in Los Angeles, CA and Fort Lee, NJ, manufactures high quality soups and seasonings for the food service industry. Somi was searching for a US manufacturer of soups, stocks, broths, and/or sauces that could help support its Japan production capabilities as well as expand sales in the US. Somi was specifically interested in a company located on the West Coast.
Based on their criteria, Takenaka Partners identified several potential acquisition targets, including Cauldron Broths, based in Blaine, WA. Cauldron Broths specializes in soups made from local and organic ingredients and was founded in an effort to develop more flavorful and nutritionally dense broths than were then available on the market.
The transaction benefits both companies. It enables Somi to manufacture some of its products in the US, rather than export them from Japan. Furthermore, it also allows Cauldron Broths to sell its products to Japan through Somi’s distribution channels. According to Yukuo Takenaka, President and CEO of Takenaka Partners, “we are pleased to have helped facilitate a synergistic partnership between Somi and Cauldron Broths and we look forward to watching both companies grow”.