One Equity Partners (“OEP”), a well-established middle-market private equity firm, has announced its agreement to acquire CraftMark Bakery (“CraftMark” or “the Company”), a prominent supplier of bakery products serving quick-service restaurants (QSRs) and in-store retail bakeries. This acquisition marks a significant step for both companies, aligning with OEP’s strategy of investing in high-growth foodservice and retail segments.
Based in Indianapolis, CraftMark Bakery is a leading wholesale producer of a variety of high-quality bakery products, including bread dough, cookie dough, muffins, flatbreads, baked cookies, and filled dough products. With a highly automated, state-of-the-art production facility, CraftMark operates seven advanced production lines and boasts a production capacity exceeding 500 million pounds annually. This impressive scale and operational efficiency have positioned the company as a key supplier for nationwide customers in both the foodservice and retail bakery markets.
A Strategic Investment in the Expanding Frozen Bakery Market
Joseph Huffsmith, Partner at One Equity Partners, emphasized the strategic importance of the acquisition, highlighting the attractive growth opportunities within the North American frozen bakery industry. “The North American frozen bakery space is a large, growing, and fragmented market in which OEP has previous experience. Our investment in CraftMark presents an opportunity to participate in the attractive foodservice and in-store bakery segments, each with considerable growth potential,” Huffsmith stated.
Huffsmith’s comments underscore OEP’s interest in leveraging CraftMark’s strengths to drive further expansion. The company’s broad product portfolio, strong customer relationships, and industry-leading production capabilities make it an ideal platform for growth. By tapping into the increasing demand for high-quality, ready-to-bake products in both foodservice and retail sectors, OEP aims to accelerate CraftMark’s market penetration and operational reach.
Haley Citrome, Vice President at One Equity Partners, also expressed enthusiasm for the partnership, citing CraftMark’s reputation for excellence and innovation in the baked goods sector. “CraftMark has established itself as a leader in the baked goods production space. We look forward to working with the company’s management team to support and grow its blue-chip customer base and expand service offerings through strategic mergers and acquisitions, as well as continued investment into base operations,” Citrome added.
CraftMark Bakery’s Vision for Growth
For CraftMark, the acquisition represents an exciting new chapter of expansion and development. The company has steadily built a strong presence in the frozen bakery industry by prioritizing quality, efficiency, and innovation. CEO Kurt Seagrist expressed confidence in the partnership with OEP, noting the firm’s expertise in the specialty baked goods market.
“We look forward to our partnership with One Equity, an investor with proven expertise in growing specialty baked goods businesses, to build out our operations and usher CraftMark into its next phase of growth,” said Seagrist. “OEP is an ideal partner as we seek to expand through organic growth and acquisitions.”
With One Equity Partners’ support, CraftMark aims to strengthen its existing operations while exploring new avenues for expansion. This includes enhancing its production capabilities, broadening its product range, and increasing its footprint in the foodservice and retail bakery markets. Additionally, OEP’s experience in executing strategic acquisitions will enable CraftMark to integrate complementary businesses that align with its long-term growth strategy.
Industry Trends and Market Potential
The frozen bakery industry has experienced steady growth in recent years, driven by shifting consumer preferences and the rising demand for convenience. Quick-service restaurants and retail bakeries continue to seek high-quality, ready-to-use bakery products to meet consumer expectations for fresh, delicious offerings without the complexity of in-house baking. CraftMark’s product lineup aligns perfectly with these market needs, positioning the company for sustained success.
Additionally, automation and advanced manufacturing technologies have played a crucial role in shaping the industry. CraftMark’s state-of-the-art production facility, equipped with industry-leading automation, provides a significant competitive advantage in terms of efficiency, scalability, and consistency. With a growing focus on operational excellence, the company is well-positioned to meet the increasing demand for high-volume, high-quality bakery products.
Transaction Details and Financial Considerations
The acquisition is expected to be finalized in the second quarter of 2025, subject to customary closing conditions. While the financial terms of the transaction have not been disclosed, the deal represents a significant investment in the future of CraftMark Bakery and its growth potential.
As part of the transaction, Kirkland & Ellis LLP served as legal counsel to One Equity Partners, while KPMG LLP provided accounting and tax advisory services. Steel City Private Credit, a direct lending strategy formed through a partnership between PNC Financial Services and The TCW Group, is providing debt financing for the deal. Additionally, Harris Williams acted as the financial advisor to CraftMark, helping facilitate the transaction.
