CH Guenther acquires QSR bun supplier to increase foothold with McDonald’s

By Kristine Sherred contact

- Last updated on GMT

CHG now employs 3,500 people at 24 manufacturing sites in the US, Canada and Europe. Pic: Getty Images/Bloomberg
CHG now employs 3,500 people at 24 manufacturing sites in the US, Canada and Europe. Pic: Getty Images/Bloomberg

Related tags: M&A, Private equity, Supplier, Baking industry, Bakery, Bread, Flour, Tortilla, Seasoning, Mcdonald's

CH Guenther & Sons (CHG), which supplies buns and English muffins to quick-serve restaurants (QSR) and grocers, has finalized a deal to acquire Mid South’s extensive bun business, including the supply of 3,500 McDonald’s restaurants across the US.

The deal, terms of which were not disclosed, marks CHG’s third acquisition in the past year. The San Antonio, Texas-based producer bought Utah’s Cookietree Bakeries in August 2018, and German bakery supplier Wback in January this year.

“Bringing Mid South into the CHG family of companies builds on the bakery strength and platform which​ CHG already has and provides the Mid South teams with broader resources and customer relationships,” ​Dale Tremblay, CHG president and CEO, told BakeryandSnacks.

QSR suppliers

For 20 years CHG has supplied baked goods to McDonald’s in the US, Canada and Europe. Mid South also works with the burger giant, enabling CHG to expand its QSR reach, especially across the southern US, from Nevada and Idaho to North and South Carolina.

According to Mid South, it shipped more than 1.2bn buns to 18 states last year.

“These added capabilities allow us to not only support McDonald’s but also other CHG customers,” ​said Tremblay.

Steve Warden, Mid South president, added, “CHG’s culture, scale, product set and manufacturing expertise will allow Mid South to grow our reach and better serve our customers.

“They are well-aligned with our emphasis on customer service and product quality, and we believe we can accomplish great things together.”

Both companies will continue to operate in their existing facilities.

CHG brands and history

Chicago private equity firm Pritzker Private Capital bought CHG last April in a transaction purportedly valued at $1.4bn.

The baker produces the flour and seasoning brands Pioneer, Morrison, Sun-Bird, as well as Tribeca breads and White Wings tortilla mixes. It also develops private-label products for foodservice, club and retail customers.

The company now employs around 3,500 people at 24 manufacturing sites in North America and Europe.

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