Platinum Equity and Butterfly Strategically Acquire Rise Baking
Platinum Equity and Butterfly Join Forces to Acquire Rise Baking Company
In an exciting development in the food sector, leading operational private equity firms, Platinum Equity and Butterfly, have announced their partnership to acquire Rise Baking Company. This strategic move is set to propel Rise into its next chapter of growth.
About Rise Baking Company
Founded in 2013 and located in Minneapolis, Rise Baking Company is a prominent supplier of various bakery products, including cookies, pies, cakes, icings, muffins, and crispy bars. The company supplies these products to in-store bakeries and foodservice customers across North America, ensuring it reaches a broad audience.
Management and Operations
Following the acquisition, Rise Baking Company will continue to operate under its current management team led by Chief Executive Officer Brian Zellmer. Zellmer expressed his gratitude for the dedication of the Rise team, acknowledging their pivotal role in developing the company into a leading player in the bakery market.
Acquisition Highlights
The partnership between Platinum Equity and Butterfly positions them as equal partners in this investment. The financial specifics of the deal were not disclosed, but both firms are devoted to supporting Rise's strategic growth. This acquisition is expected to enhance Rise's operations and expand its market reach significantly.
Strategic Growth Plans
Rise has demonstrated its capability to grow, having effectively completed ten acquisitions since its inception. The company boasts a well-diversified portfolio focused on providing high-quality bakery products, ensuring customer satisfaction and loyalty.
Statements from Leadership
Jacob Kotzubei, Co-President of Platinum Equity, shared his positive outlook on the acquisition. He noted that Rise is not only a leader in its field but also has a strong foundation with significant room for organic growth and expansion through additional mergers and acquisitions.
Adam Waglay, Co-Founder and Co-CEO of Butterfly, echoed this sentiment by emphasizing the firm's specialized expertise in the food sector. He remarked on the importance of enhancing Rise's growth trajectory through both organic methods and strategic acquisitions. The aim is to elevate Rise Baking Company's mission to consistently exceed customer expectations.
Future Outlook
With the transaction anticipated to close in the fourth quarter, the new alliance aims to foster innovation and explore untapped opportunities within the bakery sector. As both firms prepare to deploy their combined operational and financial resources, expectations are high for the positive impact on Rise's growth and market position.
Legal and Financial Advisors
Rise was supported by Morgan Stanley & Co. LLC as its lead financial advisor in this deal, with Harris Williams also providing assistance. Conversely, Platinum Equity and Butterfly sought advice from Houlihan Lokey and Stifel for financial matters. Legal counsel for the acquisition was provided by Gibson, Dunn & Crutcher LLP, along with Simpson Thacher & Bartlett.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm known for its strategic acquisitions and operational efficiency. With over $48 billion in assets under management, the firm has established a diverse portfolio comprising roughly 50 operating companies serving clients worldwide across various sectors, including technology, media, and logistics.
About Butterfly
Headquartered in Los Angeles, Butterfly is dedicated to the food sector's nuances, navigating through the entire value chain from processing to branded goods. Managing over $4 billion in assets, Butterfly aims for attractive investment returns fueled by its deep industry specialization.
About Rise Baking Company
Rise Baking Company prides itself on a customer-first culture, producing a diverse range of bakery goods for notable clients, including major grocery chains and convenience stores. Their commitment to quality is rooted in the belief that their finest ingredient is their dedicated workforce.
Frequently Asked Questions
1. What is the significance of this acquisition for Rise Baking Company?
This acquisition is significant as it aligns Rise with two leading equity firms, potentially accelerating its growth and market expansion through improved resources and strategic goals.
2. Who are the key players involved in the management of Rise Baking Company?
Brian Zellmer continues to lead the company as CEO, supported by its current management team, ensuring stability and ongoing strategic direction post-acquisition.
3. Where is Rise Baking Company headquartered?
Rise Baking Company is headquartered in Minneapolis, Minnesota, a central location for its operations in North America.
4. How many acquisitions has Rise Baking Company completed?
Since its founding in 2013, Rise has successfully completed ten acquisitions, demonstrating its strong growth trajectory in the bakery industry.
5. What is the expected timeframe for the acquisition to close?
The acquisition is anticipated to close in the fourth quarter of the year, paving the way for new opportunities for Rise.
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