Leading operational private equity firms
partner to accelerate Rise's next chapter of
growth
LOS
ANGELES, Sept. 17, 2024 /PRNewswire/ -- Global
investment firm Platinum Equity and Butterfly, a Los Angeles-based private equity firm
specializing in the food sector, today announced the acquisition of
Rise Baking Company ("Rise").
Platinum Equity and Butterfly will be equal partners in the
investment. Financial terms of the transaction were not
disclosed.
Founded in 2013 and based in Minneapolis, Minnesota, Rise is a leading
supplier of bakery products, including cookies, pies, cakes,
icings, muffins, crispy bars, and more, to in-store bakeries and
foodservice customers throughout North
America. Rise will continue to operate under its current
management team, led by Chief Executive Officer Brian Zellmer.
"We have built this company into one of the leading bakery
platforms in North America thanks
to the contributions of our incredible team over the years," said
Zellmer. "We welcome the opportunity to partner with Platinum
Equity and Butterfly as we continue to grow Rise Baking Company to
serve our customers as their total bakery partner."
Rise has completed 10 acquisitions since its founding and today
serves a blue-chip customer base with a well-diversified portfolio
of bakery products. The company has created a scalable
manufacturing and logistics network that allows it to effectively
service national and regional accounts.
"We view Rise as an established leader with impressive scale and
a strong foundation with a lot more room to grow both organically
and through additional M&A," said Platinum Equity Co-President
Jacob Kotzubei. "Beyond the quality
of its products, we believe the quality of Rise's people helps set
it apart. The team's creative spirit, deep understanding of market
trends, and hands-on, in-store expertise provide its customers
tremendous value. We look forward to deploying our financial and
operational resources to help the company expand its reach."
"We are honored to partner with Brian and the full Rise team to
support their expansion by turbo-charging growth both organically
and through strategic acquisitions," said Butterfly Co-Founder and
Co-CEO Adam Waglay. "As a
food-focused and operations-driven investment firm, we have taken a
keen interest in the attractive bakery sector, and we are excited
to bring our specialized expertise and deep food network to bear to
help amplify and accelerate the company's mission to Rise above its
customers' expectations one bite at a time."
The transaction is expected to close in Q4 2024.
Rise was advised by Morgan Stanley & Co. LLC as lead
financial advisor in addition to Harris
Williams. Houlihan Lokey and Stifel are serving as
financial advisors to Platinum Equity and Butterfly, and Bank of
America Securities is providing financing for the acquisition.
Gibson, Dunn & Crutcher LLP and Simpson Thacher & Bartlett
are serving as legal advisors to Platinum Equity and Butterfly, and
Willkie Farr & Gallagher LLP is
providing debt financing counsel.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global
investment firm with more than $48
billion of assets under management and a portfolio of
approximately 50 operating companies that serve customers around
the world. Platinum Equity specializes in mergers, acquisitions and
operations – a trademarked strategy it calls
M&A&O® – acquiring and operating companies in a
broad range of business markets, including manufacturing,
distribution, transportation and logistics, equipment rental,
metals services, media and entertainment, technology,
telecommunications and other industries. Over the past 28 years
Platinum Equity has completed more than 450 acquisitions.
About Butterfly
Butterfly is a Los Angeles, California-based private equity
firm specializing in the food sector, spanning the entire food
value chain from "seed to fork" via four key segments: upstream
& processing, B2B service providers, multi-site and branded
goods. Butterfly manages over $4
billion of assets to date and aims to generate attractive
investment returns through deep industry specialization, a
disciplined and data-driven investment process and a hands-on
approach to portfolio transformation. For additional information
about Butterfly, please visit its website at www.bfly.com.
About Rise Baking Company
Rise Baking Company, based
in Minneapolis, MN, is a North American bakery manufacturer
that produces a broad portfolio of products for in-store bakeries
and foodservice customers, including leading national grocery
chains, convenience stores, QSRs, and mass merchandisers. Rise
operates with an unparalleled customer-first culture, resulting in
best-in-class product innovation, quality, and service. Rise Baking
Company believes "our finest ingredient is our people." For more
information, please visit risebakingcompany.com.
Media Contacts:
Dan Whelan
Platinum Equity
dwhelan@platinumequity.com
Prosek Partners for Butterfly
pro-butterfly@prosek.com
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SOURCE Platinum Equity