Pamplona Capital Management has completed the acquisition of the BakeMark business of CSM Bakery Solutions, a portfolio company of Rhône Capital.
BakeMark is a manufacturer and distributor of bakery ingredients and supplies. Products include bakery mixes, fillings, icings, glazes, commodities, frozen products and bakery supplies. Company owned brands include Westco, Trigal Dorado and BakeSense. BakeMark is based near Los Angeles in Pico Rivera, CA and has three manufacturing plants and 25 distribution centers located across North America (www.yourbakemark.com).
CSM Bakery Solutions, based in Atlanta, provides bakery ingredients, products and services for retail and food service markets as well as artisan and industrial bakeries. The company has more than 45,000 customers in 100-plus countries and a portfolio of brands providing specialized ingredients (dry mixes, fillings, icings, glazes, mélange, toppings, batter, and frozen dough) and finished products (cakes, donuts, muffins, brownies, cookies, and specialty breads) (www.csmbakerysolutions.com). Rhône Capital purchased CSM Bakery Solutions in July 2013 from The Netherlands-based CSM NV for €1,050 million.
CSM Bakery’s President and CEO Marianne Kirkegaard stated that the sale of BakeMark will allow the company to focus on its core business in Europe and North America. “Completing the sale of BakeMark allows us to strengthen our core business in Europe and North America by focusing more on our portfolio of bakery products and ingredients,” she said. “Under Pamplona, BakeMark can further enhance its position as the industry’s supply and distribution market leader in North America.”
Harris Williams & Co. was the financial advisor to CSM Bakery. The transaction was led by Tim Alexander, Brant Cash and Andy Warczak of the firm’s consumer group and Bob Baltimore of the firm’s specialty distribution group. “BakeMark’s position as a leading bakery distribution platform made it a highly sought after investment opportunity,” said Mr. Alexander. “As an independent company separate from CSM, BakeMark can focus on its unique distribution model and further accelerate its growth.”
The BakeMark investment was made from Pamplona’s fifth private equity fund, Pamplona Capital Partners V LP, which closed earlier this year with $3.2 billion in capital. Pamplona makes direct private equity, fund of hedge funds, and single manager hedge fund investments. The firm manages over $10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices, and funds of hedge funds. Pamplona was founded in 2005 and is based in London and New York (www.pamplonafunds.com).
Rhône Capital is a global private equity firm with more than €3 billion under management and a focus on private equity investments in businesses with a pan-European or transatlantic presence. Sectors of interest include business services, chemicals, consumer products, food, industrial, materials, mining, and shipping. The firm is currently investing capital from its €2.6 billion fifth private equity fund which was raised in July 2015. Rhône was founded in 1995 by Robert Agostinelli and Steven Langman and has offices in London and New York (www.rhonegroup.com).
Committed debt financing for the transaction was provided by the Senior Direct Lending Program, a joint venture between Ares Capital Corporation and Varagon Capital Partners, and Northwestern Mutual Capital.
© 2017 Private Equity Professional | August 16, 2017
