Rise Baking Company's owner to explore $2.5 billion sale -sources
Private equity firm Olympus Partners is reportedly exploring a potential $2.5 billion sale of Rise Baking Company. Rise Baking, based in Minneapolis, produces various baked goods and was acquired by Olympus in 2018. The firm has hired Morgan Stanley to handle the sale process. Rise Baking generates approximately $220 million in earnings before interest, taxes, depreciation, and amortization. Private equity firms have been active in the food manufacturing sector, with recent deals including Clayton, Dubilier & Rice's acquisition of Shearer's Foods.
By Abigail Summerville
Jan 22 (Reuters) - The private equity firm that owns Rise Baking Company is preparing to launch a sale process for the U.S. bakery provider that could value it at around $2.5 billion, including debt, according to people familiar with the matter.
Olympus Partners has hired investment bank Morgan Stanley (MS.N) to run a sale process for Rise Baking, the sources said.
Rise Baking generates around $220 million in 12-month earnings before interest, taxes, depreciation and amortization, the sources added, asking not to be identified because the matter is confidential.
Morgan Stanley and Olympus declined to comment. Rise could not be reached for comment.
Headquartered in Minneapolis, Rise makes breads, cookies, cakes, muffins, icings and more for North American bakeries, grocery stores and foodservice providers.
Olympus acquired Rise in 2018 from private equity firm Arbor Investments for an undisclosed amount. In 2021, it combined Rise with Brill, which was the North American bakery business of Rhone Capital-backed Baker & Baker Group. Last month, Rise expanded into the pie category when it acquired two pie facilities.
Private equity firms are active players in the food manufacturing space. Last month, Clayton, Dubilier & Rice acquired Shearer’s Foods, a manufacturer of salty snacks, in a $2.85 billion dollar deal, according to sources.
