QualiTech, a provider of plant nutrition, animal nutrition, and food ingredients, and a portfolio company of MidOcean Partners, has acquired Ellison Bakery, a portfolio company of Tilia Holdings.
Fort Wayne, Indiana-headquartered Ellison Bakery is a maker of baked ingredients such as mix-ins, cookie components, and snack inclusions (e.g., chocolate chip pieces, brownie pieces, and pie crust pieces). These products are sold to the retail, industrial, and food service sectors and are used in frozen novelties, protein bars, and beverages.
Ellison Bakery was founded by Donald Ellis in a family garage in 1945 and supplied baked goods to restaurants and grocery stores in the Fort Wayne, Indiana area. The company grew quickly and later became the exclusive manufacturer for Archway Cookies in Indiana, Kentucky, and Wisconsin. Today, Ellison is led by CEO Stephanie Chattillion and has over 100 employees and operates out of a 115,000 sq. ft. facility located in Fort Wayne.
Tilia Holdings acquired Ellison Bakery in August 2020 from Blackford Capital which had acquired the business in 2017 in partnership with the Ellis family, Promus Equity Partners, Concentric Equity Partners, and Baird Principal Group.
“We are excited to partner with QualiTech and to leverage MidOcean’s resources and expertise in the food business to drive success for the combined company,” said Ms. Chattillion. “QualiTech’s approach to customer service uniquely aligns with our own culture and commitment to delivering high-quality products to our customers.”
QualiTech specializes in producing ingredients for food, animal nutrition, and agronomy (the agriculture science and technology used in producing and using plants for food, fuel, fiber, and land restoration). The company’s food ingredients span specialty inclusions, particulates, and custom ingredients that enhance the texture, flavor, appearance, and nutritional value of a food product. Within animal nutrition, Qualitech develops and manufactures feed ingredients for livestock and poultry that includes vitamin and mineral premixes, microbials, and specialty blends. The company’s agronomy products are used for oil spill response, soil stabilization, and water treatment. QualiTech, led by CEO Rick Pederson, was founded in 1967 and operates a 200,000 sq. ft. operating facility and headquarters located 27 miles southwest of Minneapolis in Chaska, Minnesota.
“Bringing Ellison into the QualiTech family will be beneficial for both companies as well as our customers,” said Mr. Pedersen. “The acquisition accelerates QualiTech’s efforts to lead the industry in providing specialty ingredients that enhance the sensory components of consumers’ favorite foods and positions our business for long-term success.”
According to a report by Grand View Research, the specialty food ingredients market, particularly in the inclusions and toppings segment, is poised for significant growth. The global food inclusions market will grow at a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030, driven by increasing consumer demand for enhanced taste and texture in food products.
“The transformational combination of these two businesses reinforces QualiTech’s position as a differentiated ingredients platform and provides an entry into compelling new product applications and end markets,” said Steven Loeffler, a managing director at MidOcean.
New York City-headquartered MidOcean closed its sixth fund, MidOcean Partners VI LP, above target with more than $1.5 billion of capital in April 2023 and is the largest fund MidOcean has ever raised. Fund VI invests from $75 million to $300 million in North America-based companies that have enterprise valuations from $150 million to $750 million. The firm’s industries of interest include a range of subsectors within consumer and business services. Since its founding in 2003, MidOcean has invested in over 50 platform companies and closed more than 140 add-on acquisitions.
Chicago-based Tilia, the seller of Ellison Bakery, makes control investments in lower middle business-to-business food services companies. The firm was co-founded in 2017 by Johannes Burlin and Eric Larson.
© 2024 Private Equity Professional | August 23, 2024
