Klosterman Baking Company set to fuel growth with focused PE investment

29-Jul-2022 - Last updated on 29-Jul-2022 at 09:04 GMT

Pic: FG Trade

Klosterman has been acquired by an affiliate of New Water Capital Partners, which has a record of taking companies to the next level.

Founded in 1892 by the Klosterman family, the Cincinnati-headquartered bakery manufacturer produces fresh and frozen breads, buns, flatbreads, organic breads, artisan breads and doughnuts serving an extensive national base of foodservice, retail and institutional customers. Today, Klosterman Baking Company operates 17 bakeries and distribution facilities across eight Midwest states.

“As a family, we decided it was in our best interest and the interest of the company that a new organisation take the lead of the business,” said Chip Klosterman.

“New Water’s proven record of success in building on the strengths of partner companies to reach the next level of growth and success was vital to us in our selection process and makes them the preferred partner to continue our family’s legacy.”

Building on culture and legacy

New Water’s long-term growth strategy for Klosterman includes updates and enhancements to increase production and efficiencies. The PE firm focuses on supporting lower-middle market companies in transition, building on their unique culture and strengths.

“Over the course of four generations, the Klosterman family has built a remarkable business that has a reputation for putting customers and employees first,” said New Water principal Anuj Singh.

“We are grateful to be able to partner with the company to continue building upon that culture and legacy.

“With the ever-growing demand for consumer convenience, the expansion of the fast food and quick-serve restaurant sector, and the recent inflation-driven appetite for home-served meals, Klosterman is well positioned to withstand and benefit from a fluctuating economic and consumer environment.”

Added New Water VP Nick LaRosa, “Klosterman will look to expand its product portfolio and geographic distribution footprint to better serve its growing customer base through a combination of organic and inorganic growth levers.

Klosterman president Ross Anderson said the investment and management experience from New Water will give the company the tools to scale up to meet existing customer demand.

“We’re all very excited about the enormous potential for Klosterman Baking Company with this new partnership with New Water,” said Anderson.

Details of the transaction were not disclosed.