Clearlake Capital Group has agreed to acquire BakeMark USA from Pamplona Capital Management. BakeMark manufactures and distributes bakery ingredients, products and supplies, serving approximately 1,200 suppliers and about 19,000 customers across the US and Canada. Harris Williams and Houlihan Lokey advised Pamplona, while Credit Suisse advised Clearlake and is leading financing to support the investment alongside Deutsche Bank Securities and BMO Capital Markets.
Santa Monica, CA and Pico Rivera, CA – July 20, 2021 – Clearlake Capital Group, L.P. (together with certain of its affiliates, “Clearlake”) today announced it has signed a definitive agreement to acquire BakeMark USA, LLC (“BakeMark” or the “Company”) from Pamplona Capital Management (“Pamplona”). Financial terms of the transaction were not disclosed.
With over 100 years of service to the baking industry, BakeMark is recognized as a category leader with quality products, quick delivery, and strong R&D capabilities. Operating as a critical link between diversified bases of suppliers and customers, the Company serves approximately 1,200 suppliers and about 19,000 customers across the U.S. and Canada. Covering substantially all channels in the bakery industry, BakeMark serves retail bakery, in-store bakery, wholesale bakery, foodservice operators, and beyond. Its diverse base of customers includes both street accounts such as local independent bakeries and national accounts such as coffeehouse and donut chains.
With a complete line of bakery mixes, fillings and icings, and other baking ingredients and products, BakeMark offers both resale ingredients and self-manufactured products through its exclusive brands, including Westco, Trigal Dorado, Best Brands, BakeSense, BakeQwik, C’est Vivant, and Sprinkelina. Its comprehensive line of products enables BakeMark to serve as a one-stop shop for its customers. Headquartered in Pico Rivera, CA, BakeMark has approximately 1,000 employees and operates five manufacturing sites and 29 distribution centers across North America.
“We are thrilled to partner with BakeMark and support the Company in its next stage of accelerated growth,” said José E. Feliciano, Co-Founder and Managing Partner, and Arta Tabaee, Managing Director, Clearlake. “The BakeMark investment is a natural extension of Clearlake’s deep experience investing in both the food & beverage and distribution & logistics ecosystems. We believe long-term market tailwinds, including increased focus on supply chain simplification and growing demand for ethnic and specialty bakery products, offer a unique opportunity to invest behind a category leader like BakeMark. We are eager to support the management team and bring together all of Clearlake’s available resources to drive value creation, accelerate organic growth, and create an industry consolidation platform.”
“It has been an absolute pleasure working with Jim and his team to establish BakeMark as an independent platform and to aggressively grow the business into the clear market leader in the bakery distribution space through both organic initiatives and add-on acquisitions,” said William Pruellage, Co-Managing Partner, Pamplona. “We wish BakeMark and Clearlake continued success in the next chapter of growth.”
“Today marks an exciting new chapter in BakeMark’s history,” said Jim Parker, CEO, BakeMark. “Since acquiring the business in 2017, Pamplona has been a trusted and supportive partner, helping to guide BakeMark’s management team through a successful period of sustained growth. Clearlake’s operational insights and experience in the food and beverage sector will accelerate that growth and support our commitment to deliver the best quality products and services for our customers.”
Harris Williams and Houlihan Lokey served as financial advisors to Pamplona. Credit Suisse served as financial advisor to Clearlake and is leading the financing to support the investment alongside Deutsche Bank Securities Inc. and BMO Capital Markets.
Based in Pico Rivera, CA, BakeMark is the recognized market leader in the baking industry, as a manufacturer and distributor of bakery ingredients, products, and supplies. BakeMark serves North America and customers internationally across all industry channels with its comprehensive product portfolio, including bakery mixes, fillings, icings, glazes, commodities, frozen products, and bakery supplies. BakeMark is the exclusive distributor of some of the industry’s top brands, including Westco, BakeSense, Best Brands, Multifoods, BakeQwik, Trigal Dorado, C’est Vivant, and Sprinkelina, operating through five manufacturing plants and 29 distribution centers located across North America. Please visit www.bakemark.com for more information.
Clearlake Capital Group, L.P. is a leading investment firm founded in 2006 operating integrated businesses across private equity, credit, and other related strategies. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are consumer, industrials, and technology. Clearlake currently has approximately $39 billion of assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.
Pamplona Capital Management is a specialist investment manager established in 2005 that provides an alternative investment platform across private equity and other diversified strategies. With offices in New York, London, Madrid, and Malta, Pamplona manages over $11 billion in assets. Please see www.pamplonafunds.com for further information.