New York equity firm invests 'significant' funds in Schwan family's food delivery business

Yelloh has formed a partnership with a private equity group that it hopes will drive its continued transformation and growth in the frozen food home delivery business.

In 2018, the Schwan family sold a 70% share of a business that serves restaurants, groceries and other retailers to Korean firm CJ CheilJedang for $1.8 billion. The family kept the Schwan's Home Delivery business, rebranded a year ago as Yelloh in a nod to its iconic yellow home delivery trucks.

"As customer demand for frozen continues to surge, we believe that now is the time to make even bolder moves to ensure Yelloh is the category leader," said Paul Schwan, chairman of Yelloh, in a news release.

Since rebranding last March, Yelloh has invested in a number of new digital and mobile tools to update the consumer experience and delivery capabilities.

4x4 Capital will invest a "significant" amount of money in Yelloh, said Schwan, who will give up his chief executive role with the move. Alex Medicis, a partner with the New York-based equity firm, will become interim CEO, with a full search starting for a permanent head.

"We see lots of growth opportunities as consumers increasingly look for quality products and convenience of delivery in the growing home delivery and frozen food markets," Medicis said in the release.

4x4 partners have history in food and beverage industries and are actively involved in their other platform company 1440 Foods, makers of functional snacking and active lifestyle branded products such as Pure Protein, Met RX, Body Fortress and Balance Bar.

Medicis will serve on the board of Yelloh after a new CEO has been named.