Middle-market private equity firm One Equity Partners is to sell East Balt Bakeries (East Balt), a global supplier of premium buns and artisanal rolls to major restaurant chains, to Grupo Bimbo for USD650 million.
The transaction is expected to close in the second half of 2017, subject to customary closing conditions and regulatory approvals.
Headquartered in Chicago, East Balt employs 2,200 workers who produce 13 million specialty bread products each day, including bagels, biscuits, buns, English muffins, tortillas and bread. Founded in 1955 as a single bakery with one delivery truck, East Balt now operates 21 bakeries in 11 countries that make products for the world’s largest quick service restaurant (QSR) chains.
“Through excellent partnership with East Balt management, the Company has achieved strong organic growth, demonstrated consistent profitability and strengthened its position as a preferred bakery products supplier in several of the largest and fastest growing QSR markets around the world,” says Joseph Huffsmith, Managing Director at One Equity Partners. “This is a terrific outcome for One Equity Partners’ investors and East Balt Bakeries, which is poised for continued success under its new ownership.”
Since OEP acquired East Balt in December 2012, the Company has completed three acquisitions, built two bakeries in Rome and Tianjin, China, begun construction on a third in Paris, and nearly doubled its annual EBITDA to USD70 million. East Balt has been able to achieve this growth by striving to be a quality source of assured supply for its leading customers wherever they operate globally.
“One Equity Partners enabled us to execute upon our growth strategy to create a stronger, more diversified company with significant operating efficiencies and an expanded global footprint to serve our loyal customers around the world,” says Mark Bendix, CEO of East Balt Bakeries. “With the resources of our new owner, we expect that our ability to make and supply best-in-class bakery products will only be enhanced.”
Morgan Stanley & Co is acting as financial advisor to One Equity Partners in connection with this transaction. Baker & McKenzie is serving as legal counsel and KPMG is acting as diligence advisor.
