Minneapolis-based commercial bakery acquired in deal that could be worth $2.5 billion

Two private equity firms are acquiring Minneapolis-based Rise Baking Co. in a deal that could be worth $2.5 billion.

Financial terms of the deal were not disclosed. But sources told Reuters earlier this year that Rise was on the market for that amount. The commercial bakery supplies grocery stores and food-service companies around the country with cookies and muffins and turns an annual profit of $220 million.

Rise began in 2013 as the parent company of New French Bakery and has acquired 10 bakery brands in the years since, including two pie facilities in the past year. It now has 20 manufacturing plants nationwide and nearly 4,000 employees.

Another private equity firm, Olympus Partners, bought Rise in 2018. Platinum Equity and Butterfly expect to close on the deal by the end of the year and split ownership.

“We view Rise as an established leader with impressive scale and a strong foundation with a lot more room to grow,” Platinum Equity Co-President Jacob Kotzubei said in a news release. “We look forward to deploying our financial and operational resources to help the company expand its reach.”

In addition to New French Bakery, Rise’s brands include Brill, South Coast Baking, Best Maid Cookie Co., Henry & Henry, Bakestone Brothers and Karp’s.

Operations will continue in Minneapolis under CEO Brian Zellmer.