Glencoe Capital, LLC (”Glencoe Capital”), a Chicago-based private equity firm, today announced that it has sold its Toronto-based artisan bakery business, ACE Bakery, Ltd. (”ACE”) to Weston Foods (Canada) Inc. for CAD$110 million.
The ACE transaction was the fourth realization of Glencoe Capital’s third private equity fund, Glencoe Capital Partners, III, L.P., which has invested in a variety of sectors ranging from educational services to specialty chemicals. Glencoe Capital and its affiliated private equity funds, which have aggregate capital of over $600 million, invest in direct lead-sponsored acquisitions and make growth equity investments in lower middle-market companies with transaction values between $25 million and $125 million.
ACE Bakery is Canada’s premier artisan bakery, developing and marketing a range of breads under its own brand, relying on strict, traditional recipes and fresh, all-natural ingredients of the highest quality. ACE’s products include par-baked and fresh breads and are sold both at retail groceries and through food-service channels.
Glencoe Capital acquired ACE Bakery in February 2008 and together with its management team embarked on a series of strategic initiatives to improve and expand ACE’s operations and market share. These initiatives included product line extensions for its artisan breads; new product introductions such as shelf stable crisps; expanded marketing channels into foodservice and private label programs; and additional production capacity through investments in new plant and equipment. ACE opened a new 30,000-square-foot facility in Vaughn, Ontario in January 2010.
As a result of these efforts, ACE Bakery increased its revenues and cash flows by 67.5% and 41.6%, respectively, over the course of its almost three-year ownership by Glencoe Capital and created the foundation for its continued growth.
“Glencoe Capital has been a terrific partner with ACE,” said Philip Shaw, CEO of ACE. “The Glencoe team has provided us with its investment experience and strategic resources while allowing us to drive the operations of the business. The ACE team looks forward to continuing its success with the Weston group.” Weston Foods is an operating subsidiary of George Weston Limited (TSX: WN), one of North America’s largest food production and distribution companies.
“ACE Bakery has generated excellent results during Glencoe Capital’s ownership,” said David S. Evans, Glencoe Capital’s chairman, “and we would like to thank Phillip Shaw and the management team for their many contributions. We believe that ACE Bakery will continue to thrive under its new owner and we wish them well.”
Glencoe Capital, LLC
Founded in 1993, Glencoe Capital is a private equity firm focused on lead-sponsored control acquisitions and growth equity investments in lower middle-market companies. Glencoe and its affiliates have total aggregate capital of approximately $1.4 billion and have completed acquisitions for its control funds representing over $1 billion of transaction value. The firm has offices in Chicago and Birmingham, Michigan. For more information, please visit www.glencap.com.
Source: Glencoe Capital, LLC