Platinum Equity and Butterfly Team Up to Acquire Rise Baking Company
In a noteworthy development in the food industry, leading operational private equity firms Platinum Equity and Butterfly have revealed their partnership to acquire Rise Baking Company. This strategic collaboration is set to take Rise into its next phase of growth.
About Rise Baking Company
Established in 2013 and based in Minneapolis, Rise Baking Company has become a key supplier of various baked goods such as cookies, pies, cakes, icings, muffins, and crispy bars. The company distributes these products to in-store bakeries and foodservice clients across North America, allowing it to reach a wide customer base.
Management and Operations
After the acquisition, Rise Baking Company will keep its current management team in place, led by Chief Executive Officer Brian Zellmer. Zellmer expressed his appreciation for the hard work and commitment of the Rise team, recognizing their essential role in establishing the company as a leading player in the bakery sector.
Acquisition Highlights
The alliance between Platinum Equity and Butterfly positions them as equal partners in this investment. While the financial details of the deal remain undisclosed, both firms are committed to facilitating Rise's strategic growth. This acquisition is expected to significantly enhance Rise's operations and broaden its market presence.
Strategic Growth Plans
Rise has shown its ability to expand, having successfully completed ten acquisitions since its founding. The company maintains a diverse portfolio that emphasizes high-quality bakery products, ensuring customer satisfaction and loyalty.
Statements from Leadership
Jacob Kotzubei, Co-President of Platinum Equity, expressed his optimistic view on the acquisition. He highlighted that Rise is not only a leader in its industry but also possesses a solid foundation, with considerable potential for organic growth and further expansion through additional mergers and acquisitions.
Adam Waglay, Co-Founder and Co-CEO of Butterfly, echoed these sentiments and emphasized the firm’s specialized knowledge in the food sector. He discussed the importance of driving Rise's growth through both organic strategies and targeted acquisitions. The goal is to uplift Rise Baking Company's mission to consistently exceed customer expectations.
Future Outlook
With the transaction expected to conclude in the fourth quarter, this new partnership aims to drive innovation and explore untapped opportunities within the bakery sector. As both companies gear up to combine their operational and financial resources, there are high hopes for a positive impact on Rise's growth and market position.
Legal and Financial Advisors
In this deal, Rise was supported by Morgan Stanley & Co. LLC as its lead financial advisor, with Harris Williams also contributing. On the other hand, Platinum Equity and Butterfly consulted Houlihan Lokey and Stifel for financial advice. For legal counsel related to the acquisition, Gibson, Dunn & Crutcher LLP, along with Simpson Thacher & Bartlett, provided assistance.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm recognized for its strategic acquisitions and operational efficiencies. With more than $48 billion in assets under management, the firm has created a diverse portfolio consisting of around 50 operating companies that serve clients across various sectors, including technology, media, and logistics.
About Butterfly
Based in Los Angeles, Butterfly is focused on understanding the intricacies of the food sector, engaging with the entire value chain from processing to branded goods. With more than $4 billion in assets, Butterfly aims to deliver attractive investment returns driven by its deep expertise in the industry.
About Rise Baking Company
Rise Baking Company is committed to a customer-first culture, producing a wide variety of baked goods for prominent clients such as major grocery chains and convenience stores. Their dedication to quality stems from the belief that their most valuable ingredient is their hardworking and dedicated team.
Frequently Asked Questions
1. What is the significance of this acquisition for Rise Baking Company?
This acquisition is important as it connects Rise with two top equity firms, which could enhance its growth and market expansion through better resources and strategic objectives.
2. Who are the key players involved in the management of Rise Baking Company?
Brian Zellmer will continue to guide the company as CEO, supported by its existing management team, ensuring a smooth transition and ongoing strategic direction after the acquisition.
3. Where is Rise Baking Company headquartered?
Rise Baking Company is based in Minneapolis, Minnesota, which serves as a central hub for its operations across North America.
4. How many acquisitions has Rise Baking Company completed?
Since its establishment in 2013, Rise has successfully carried out ten acquisitions, showcasing its strong growth in the bakery sector.
5. What is the expected timeframe for the acquisition to close?
The acquisition is projected to finalize in the fourth quarter of this year, opening doors for new opportunities for Rise.
