Executive Summary: Grandma Hoerner’s Foods – Premier Sale-Leaseback Opportunity
Grandma Hoerner’s Foods, Inc. is a 40-year-old, Kansas-based specialty food manufacturer with a proven track record of supplying premium jams, preserves, sauces, pie fillings, and private-label products to national retailers and distributors. Headquartered in a modern, owner-occupied facility at 31862 Thompson Road, Alma, Kansas (directly on I-70 with excellent logistics access), the company is experiencing strong growth following a successful turnaround.
After navigating prior-year revenue softness and 2025 tariff-related margin pressure, Grandma Hoerner’s has stabilized costs through pricing adjustments and secured major new private-label awards with ALDI, Trader Joe’s, Buc-ee’s, UNFI, and others. This has driven 50% top-line growth in 2025 (to $12.0 million) and positions the company for ~40% additional growth in 2026, with Q1 2026 revenue already exceeding $4.17 million. The 2026 forecast shows $17.0–17.8 million in revenue and $950,000+ in EBITDA. Strategic initiatives outlined in the company’s growth roadmap project $35.5 million in revenue by 2027, fueled by new packaging formats (pouches, plastic squeeze bottles, small-format specialty jars), expanded channels (foodservice, club stores, e-commerce), and incremental private-label volume.
The company owns its state-of-the-art production facility (reflected in fixed assets with building & improvements at $1.44 million gross and net fixed assets of $1.42 million as of 12/31/2025). A triple-net (NNN) sale-leaseback is the ideal capital solution: it unlocks immediate liquidity from the real estate (well in excess of book value given location, infrastructure, and expansion-ready site), allows the company to pay down high-interest debt (total liabilities $5.73 million, negative equity position), fund capex for new lines (pouch equipment, fillers, labelers), and support working-capital needs—all while retaining 100% operational control under a 40-year NNN lease with annual escalators and renewal options.
Why this is a standout sale-leaseback credit:
- Proven operator with sticky revenue: Once approved as a private-label supplier, retention and expansion are “far less challenging” (per company materials). Major partners include Costco, TJX Companies, World Market, Albertsons, Sprouts, KeHE, and more.
- Diversified, high-margin product portfolio: Branded lines (Grandma Hoerner’s™, Big Slice Apples™, McCoy’s Real™) plus private-label and co-manufacturing across fruit spreads, bacon jams, pepper jellies, pie fillings, salsas, BBQ sauces, organic reduced-sugar items, and more.
- Certifications that open doors: USDA Organic, Non-GMO Project Verified, FSSC 22000, Made in USA, From the Land of Kansas.
- Scalable manufacturing: 40,000+ units per shift, hot-fill glass jars (8–40 oz), flexible small-batch/high-volume capability, ongoing equipment investments.
- Clear use of proceeds: Debt reduction + growth capex = stronger balance sheet and accelerated EBITDA.
- Location advantage: I-70 frontage ensures low-cost national distribution.
A sale-leaseback here delivers immediate cash to fuel 2× revenue growth, a credit tenant with national brand recognition, and a modern food-grade facility in a logistics-friendly location—creating a compelling, low-risk investment with strong residual value and upside from the tenant’s expansion.
Contact for this Triple-Net Sale-Leaseback Henry McClure 785-383-9994 mcre13@gmail.com
