Tailwind Capital Merges Invafresh with Upshop

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Tailwind Capital Merges Invafresh with Upshop

New York – July 2024 – Tailwind Capital (“Tailwind”) has announced the merger of Fund III portfolio company, Invafresh (or the “Company”), a provider of fresh item management (“FIM”) supply chain solutions for grocery retailers, with Upshop, a provider of supply chain solutions designed to streamline forecasting, ordering, production, and inventory optimization processes for food retailers. As part of the transaction, Tailwind will retain an equity stake in the combined company alongside Level Equity. Financial terms of the transaction were not disclosed.

Founded in 1988 and headquartered in Mississauga, Canada, Invafresh solves the challenges faced by grocery retailers across their fresh operations. The Company is trusted by over 350 grocery retailers across 27,500 stores in North America and around the world. Under Tailwind’s ownership, the business scaled its recurring revenue significantly, and the Company completed one add-on acquisition, WhyWaste, in October 2023 which, in addition to expanding the Company’s business into Europe, added a new strategic solution offering.

The merger of Upshop and Invafresh is set to transform the landscape of food retail technology. The combined organization offers the first global retail enterprise operating platform built for the complexities of food supply chain optimization, waste prevention and food safety. The platform will be used by more than 400 retailers in 35 countries, operating in over 50,000 stores, and impacting millions of associates and shoppers every day.

“Invafresh has an outstanding reputation as a trusted partner to grocery retailers. We see strong upside in the combined business with opportunity for greater operating efficiency and compelling cross-sell opportunity across both Upshop’s and Invafresh’s customer bases,” said Will Fleder, Partner at Tailwind Capital. “We are excited to continue working with the Invafresh and Upshop team through its next phase of growth.”

Jim Hoch, Partner at Tailwind Capital, added “The merger of Invafresh with Upshop represents a significant milestone for the Invafresh business. We appreciate the great work of Tim and his team in scaling the business, and we are excited to invest behind Shamus Hines and the Upshop business.”

“Invafresh built a strong foundation with an award-winning culture and track record serving the largest and most complex grocery retailers in the world,” said Tim Spencer, CEO of Invafresh. “There is a massive market opportunity within the grocery retail market for innovative solutions that will redefine best-in-class store operations and shopper experience, which Upshop is well positioned to address. As the business looks towards the next chapter, we’d like to thank the Tailwind team for their partnership and support over the last several years.”

Baird served as financial advisor to Tailwind and Invafresh. Davis Polk & Wardwell LLP served as legal counsel to Tailwind and Invafresh. William Blair & Company LLC served as financial advisor to Upshop, and Goodwin Procter LLP served as legal counsel.

About Invafresh
With a combined 500+ years of Freshology experience, the heritage of Invafresh has enabled fresh food retailers to create extraordinary store operations performance and differentiated customer experiences. As the leader of Freshology, Invafresh is deployed in over 350 grocery retailers spanning a global reach of 35 countries with $100’s of millions of Fresh revenue being transacted daily, to provide AI-enhanced demand forecasting, merchandising, replenishment, sustainability and compliance, and waste prevention solutions. For more information on Invafresh, please visit invafresh.com.

About Tailwind Capital
Tailwind Capital is a private equity firm with a sector-focused approach to investing in U.S. lower middle market services companies within Infrastructure Services, Supply Chain and IT Services. Tailwind’s value creation model is centered on its Buy and Build investment strategy, which seeks to scale lower middle market businesses through accretive acquisitions and operational investments, including foundational resourcing, professionalizing operations, implementing technology capabilities and investing in talent. Since inception, Tailwind has invested $4 billion in over 285 acquisitions, including 52 platform companies and over 235 add-on acquisitions. For more information, please visit tailwind.com.