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Glencoe Capital sells ACE Bakery to Weston Foods for CAD110m

Glencoe Capital, a Chicago-based private equity firm, has sold its Toronto-based artisan bakery business, ACE Bakery, to Weston Foods (Canada) for CAD110m.

The ACE transaction was the fourth realisation of Glencoe Capital’s third private equity fund, Glencoe Capital Partners III, which has invested in a variety of sectors ranging from educational services to specialty chemicals.

Glencoe Capital and its affiliated private equity funds, which have aggregate capital of over USD600m, invest in direct lead-sponsored acquisitions and make growth equity investments in lower middle-market companies with transaction values between USD25m and USD125m.

ACE Bakery develops and markets a range of breads under its own brand. ACE’s products include par-baked and fresh breads and are sold both at retail groceries and through food service channels.

Glencoe Capital acquired ACE Bakery in February 2008 and together with its management team embarked on a series of initiatives to improve and expand ACE’s operations and market share. These initiatives included product line extensions for its artisan breads; new product introductions such as shelf stable crisps; expanded marketing channels into food service and private label programmes; and additional production capacity through investments in new plant and equipment. ACE opened a new 30,000 square foot facility in Vaughn, Ontario in January 2010.

ACE Bakery increased its revenues and cash flows by 67.5 per cent and 41.6 per cent, respectively, over the course of its almost three-year ownership by Glencoe Capital.

“Glencoe Capital has been a terrific partner with ACE,” says Philip Shaw, chief executive of ACE. “The Glencoe team has provided us with its investment experience and strategic resources while allowing us to drive the operations of the business. The ACE team looks forward to continuing its success with the Weston group.”

David S. Evans, Glencoe Capital’s chairman, adds: “ACE Bakery has generated excellent results during Glencoe Capital’s ownership and we would like to thank Phillip Shaw and the management team for their many contributions. We believe that ACE Bakery will continue to thrive under its new owner and we wish them well.”

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