St. Paul's Pearson's Candy Co. sold to California company

Pearson's Candy Co., the St. Paul confectioner of such iconic treats as Nut Goodie and Salted Nut Roll, has been sold to California-based Annabelle Candy Co.

Minneapolis-based Spell Capital Partners, which acquired Pearson's in November 2018, was the seller. Terms of the transaction, which closed last week, were not disclosed. Pearson's has approximately 150 employees.

In a separate transaction, Spell sold the Pearson's building and land to Arizona-based Tenet Equity Funding for $8.5 million. Pearson's Candy will lease the facility from the new property owner. [

"We sold both the business and the real estate," said Jim Rikkers, senior managing director of Spell Capital.

Pearson's facility on W. 7th Street in St. Paul was built in 1959. Rikkers said that Spell invested significant capital to modernize the facility.

Rikkers declined to speak about Pearson's annual revenue but said sales grew while Spell owned the company.

"The core brands are growing," he said.

The latest deal marks the third time that the company has been sold in 11 years. Spell acquired it from Connecticut-based private-equity firm Brynwood Partners, which purchased the company in 2011.

While Brynwood owned Pearson's it acquired Nestle's Bit-O-Honey candy brand in 2013. Spell sold Bit-O-Honey in 2020.

Annabelle is owned by Promise Holdings, a Chicago-based private-equity firm. It makes the Abba-Zaba, Big Hunk and Rocky Road candy bars.

Promise Holdings acquired Annabelle Candy in December 2021 and bought Seattle Gourmet Foods, maker of Dilettante Chocolates, in July.

Gordon Liao, a partner of Promise Holdings, declined to comment.