Klosterman Baking Company acquired by investment firm New Water Capital

USA— Ohio-based Klosterman Baking Company has been acquired for an undisclosed sum by New Water Capital, a local private-equity investment firm focused on lower-middle market companies in the consumer products and industrial manufacturing and services sectors.

Founded in 1892, Klosterman is a producer of fresh and frozen breads, buns, flatbreads, organic breads, artisan breads, donuts and other bakery products.

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Serving an extensive, well established national customer base of restaurants and other foodservice operators, grocery retailers and convenience stores, and institutional customers, it currently operates 17 bakeries and distribution facilities across eight Midwest states.

Florida’s New Water Capital, which already has a presence in the manufactured foods sector, through investments in frozen foods developer The Perfect Bite Co and frozen foods manufacturer Pegasus Foods, said it will look to expand Klosterman’s product portfolio and geographic distribution footprint.

“New Water’s capital investment and management experience in the food sector will give Klosterman the tools it needs to scale to meet existing customer demand and to optimize its market position nationally,” said Klosterman president Ross Anderson.

“New Water brings leadership and strategic expertise we will be able to utilize to better systemize operations, enhance our distribution channels and position ourselves for further growth.”

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New Water principal Anuj Singh described its acquisition as a “recession-resistant investment opportunity with excellent long-term growth potential”.

He added that 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.

With revenues of US$30 million to US$300 million, New Water Capital’s collaborative transaction and operating model is built specifically to support companies in transition, building on their unique cultures and strengths.

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