Global Bakeries, a portfolio company of Surge Private Equity, has acquired Bubbles Baking Co.
Bubbles Baking is a maker of more than 300 SKUs of cakes, pastries, breads, rolls, pies, cheesecakes and other related products that are sold to large grocery stores and commercial retailers. The company also provides contract baking services to pastry manufacturers and distributors.
Bubbles Baking, founded in 1963, has 55 employees and is headquartered in Van Nuys, CA (www.bubblesbakingco.com).
Global Bakeries is a maker of non-GMO bread products such as pita bread, pita chips, bagels, organic flatbread, and croissants that are sold to grocery stores (including Trader Joe’s), bakeries, and restaurants. The company also offers contract manufacturing services to national and regional food manufacturers and retailers. Global Bakeries was founded in 1985 by Albert Boyajian and is led by CEO Chris Botticella. The company is headquartered only eight miles away from Bubbles Baking in Pacoima, CA (www.globalbakeriesinc.com).
“For over 55 years Bubbles has set the standard in homemade pastries, and we at Global Bakeries not only want to continue that tradition but enhance and build on their standard of excellence with our increased efficiencies and new product lines,” said Mr. Botticella. “We are excited to add Bubbles into our family and look to the future with further great excitement.”
“The acquisition of Bubbles allows Global Bakeries to expand into the dessert baking arena,” said Tom Beauchamp, a partner at Surge Private Equity. “From better ingredient pricing to offering customers more product lines, we see a lot of opportunity in the fragmented niche boutique baking space to add value by consolidation of these strong brands and products. We aim to do several add-on acquisitions this year.”
Surge Private Equity acquired Global Bakeries in November 2018. The Firmament Group (formerly known as McLarty Capital Partners) provided debt financing for this acquisition and made an equity co-investment (www.thefirmamentgroup.com).
Surge Private Equity invests in companies that have from $2 million to $5 million of EBITDA and enterprise values of $7 million to $30 million. Sectors of interest include business services, healthcare, online businesses, and specialty goods. The firm was founded in 2017 and is based in Dallas (www.SurgePE.com).
© 2019 Private Equity Professional | March 6, 2019
