Grey Mountain Partners buys Mediterranean food manufacturer

Grey Mountain has bought Kronos from fellow US-firm Prospect Partners.

Private equity firm Grey Mountain Partners has bought a Mediterranean food manufacturer from Prospect Partners.

The Colorado-based firm bought Kronos, which sells gyro meat, pita, flatbread, filo products, hummus and sauces in the US and Canada. Chief executive Howard Eirinberg said the company would grow through new products.

“Kronos has differentiated itself as a leading Mediterranean food manufacturer in the US with a focus on quality and innovation,” said Grey Mountain affiliate manager Beth Lesniak. “We believe that Grey Mountain’s growth capital and operational support will allow the company to better serve both new and existing customers.”

Prospect Partners invested in Kronos in 2004.

“We were fortunate to support significant growth initiatives that included a new state-of-the-art 208,000 square foot facility in Glendale Heights, extending the product line, and expanding nationwide distribution,” said Prospect Partners principal Lou Kenter.

Chicago-based Prospect Partners invests in lower mid-market US companies, and manages $470 million across three funds. Its latest fund, Prospect Partners III, closed on $200 million in 2010.

Grey Mountain invests in lower mid-market companies across a wide range of industries, investing up to $75 million for majority positions in businesses. The firm has about $700 million of assets under management. Its Grey Mountain Partners Fund III closed on $425 million, $75 million over its target, in 2013.