Minneapolis baked goods maker bought by California private equity firms

A Minneapolis baked goods manufacturer has been acquired by two California-based investment firms in a deal that has the potential to be worth upwards of $2.5 billion.

Global investment firm Platinum Equity and Butterfly, a Los Angeles-based private equity firm specializing in the food sector, announced the acquisition of Rise Baking Company on Thursday.

According to the statemen t, the two firms will be equal partners in the investment. While the transaction's financial terms were not shared, Reuters said in January that a sale was in the works for Rise valued at around $2.5 billion.

Rise was founded in 2013 and is based in Minneapolis. It is a "leading supplier" of bakery products, including cookies, pies, cakes, muffins, crispy bars, and more throughout North America, with its brand names including Best Maid, New French Bakery, and Henry & Henry.

Rise will retain its management team following the purchase, 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."

The announcement says that since its founding Rise has created a "scalable manufacturing and logistics network" serving national and regional customers.

"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 [Mergers and Acquisitions]," 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 deal is expected to close in the fourth quarter of 2024.