Butterfly Equity and Graham Partners LP have acquired Custom Flavors, expanding the family-owned company’s scale and capabilities in the food and beverage sector. The deal closed on July 22, 2026.
| Acquirer | Butterfly Equity, Graham Partners LP (US) |
|---|---|
| Target | Custom Flavors (US) |
| Type | Buyout |
| Value | Undisclosed |
| Date Closed | July 22, 2026 |
| Date Announced | July 22, 2026 |
| Buy-side Advisors | Deloitte (Financial), Simpson Thacher & Bartlett LLP (Legal), Dechert LLP (Legal) |
Deal Mechanics
Butterfly Equity and Graham Partners LP have completed their acquisition of Custom Flavors, a flavors manufacturer based in San Clemente, California. The terms of the transaction were not disclosed.
The deal aims to provide Custom Flavors with financial resources for expanding its production capacity, enhancing its team capabilities, and improving its facilities. These investments are expected to reduce lead times and enable the company to serve a broader customer base across various industries including bakery, confectionery, snack foods, supplements, beverages, and dairy products.
Strategic Rationale
The acquisition is part of Butterfly Equity’s strategy to grow within the food and beverage sector. Graham Partners LP focuses on technology-driven companies but has shown interest in expanding into adjacent sectors like food and flavor manufacturing through this deal with Custom Flavors.
Custom Flavors, founded in 2005 by Mike Wendling and Steve Bishop, had previously been exploring a sale process managed by Hexagon Capital Alliance LLC. The firm’s CEO Alex Wendling will continue to lead the company supported by his father and co-founder.
Financial Context
The deal comes as Custom Flavors looks to leverage external investment for growth following its recent leadership changes. Prior to this acquisition, Mike Wendling transitioned from CEO to chairman while handing over operations to Alex Wendling in February 2026.
Advisors
The buy-side financial and legal advisory teams included Deloitte, Simpson Thacher & Bartlett LLP, and Dechert LLP. Sell-side advisors were not disclosed by the company.
Outlook
With this partnership, Custom Flavors aims to accelerate its growth trajectory and establish itself as a leading player in the flavors manufacturing space. The financial support from Butterfly Equity and Graham Partners LP is anticipated to facilitate significant investments in both infrastructure and human capital over the next few years.