Paine Schwartz Partners has completed a strategic investment in Chex Finer Foods, a specialty food distributor, through its Food Chain Fund 6.
The investment aims to enhance Chex’s capabilities in distributing value-added specialty food products, aligning with Paine Schwartz’s focus on health and wellness.
Based in Mansfield, Massachusetts, Chex has been a family-run business since 1965.
The company distributes a wide range of specialty and natural food products to independent grocery retailers, co-ops, natural food stores, and regional and national chains.
In addition to distribution, it also offers marketing support, custom sales programmes, in-store merchandising, and competitive insights to help its clients succeed in the retail sector.
Paine Schwartz’s investment in Chex supports its strategy of promoting health-focused products, including clean-label, premium selections, and globally inspired flavours.
This investment builds on the firm’s experience in the consumer and better-for-you food sectors, with existing investments in companies like Promix, Suja Life, and Urban Farmer.
The partnership with Chex’s management team aims to drive growth and strengthen industry leadership.
Paine Schwartz plans to explore new retail opportunities, optimise operations through technology investments, and pursue mergers and acquisitions in the fragmented food distribution market.
Chex president and CEO Jeremy Isenberg will continue to lead the company with support from Paine Schwartz.
Isenberg said: “We are thrilled about this strategic investment by Paine Schwartz, which marks the next phase in our effort to provide high-touch and value-added distribution services to our customers.
“What makes Chex special is our people and our partnerships – and this next chapter is about amplifying both. With Paine Schwartz, we found a partner who understands our space, respects our values, and shares our long-term vision.
“Together, we plan to expand our capabilities, reach new geographies, and deepen the impact we make for our customers, our suppliers, and our team. I’m incredibly proud of how far we’ve come and even more excited about our bright future ahead.”
Harris Williams served as financial advisor, and Brownstein Hyatt Farber Schreck served as legal counsel to Chex, on this transaction.
Morrison Foerster served as legal advisor and Bain Capital Credit as financer to Paine Schwartz Partners.
Paine Schwartz chief investment officer Angelos Dassios said: “After tracking Chex for over a year as part of our thesis buildout in the food distribution space, we are thrilled to partner with Jeremy and his team.
“From the first time we met Jeremy, we have been impressed with Chex’s stellar reputation for reliability and service, best-in-class operating metrics, and long-standing supplier and customer relationships.
“We look forward to working closely with the Chex team and believe this strategic investment will accelerate Chex’s growth in its next chapter, both organically and through strategic M&A.”
