LOS ANGELES: Global investment firm Platinum Equity and Los Angeles-based private equity firm Butterfly specializing in the food sector, today announced the acquisition of Rise Baking Company.

Platinum Equity and Butterfly will be equal partners in the investment. Financial terms of the transaction were not disclosed. The transaction is expected to close in Q4 2024.

Founded in 2013 and based in Minneapolis, Minnesota, Rise is a leading supplier of bakery products, including cookies, pies, cakes, icings, muffins, crispy bars, and more, to in-store bakeries and foodservice customers throughout North America. Rise will continue to operate under its current management team, led by Chief Executive Officer Brian Zellmer.

“We have built this company into one of the leading bakery platforms in North America thanks to the contributions of our incredible team over the years,” said Zellmer.

“We welcome the opportunity to partner with Platinum Equity and Butterfly as we continue to grow Rise Baking Company to serve our customers as their total bakery partner.”

Rise has completed 10 acquisitions since its founding and today serves a blue-chip customer base with a well-diversified portfolio of bakery products. The company has created a scalable manufacturing and logistics network that allows it to effectively service national and regional accounts.

“We view Rise as an established leader with impressive scale and a strong foundation with a lot more room to grow both organically and through additional M&A,” said Platinum Equity Co-President Jacob Kotzubei.

“Beyond the quality of its products, we believe the quality of Rise’s people helps set it apart. The team’s creative spirit, deep understanding of market trends, and hands-on, in-store expertise provide its customers tremendous value. We look forward to deploying our financial and operational resources to help the company expand its reach.”

“We are honored to partner with Brian and the full Rise team to support their expansion by turbo-charging growth both organically and through strategic acquisitions,” said Butterfly Co-Founder and Co-CEO Adam Waglay.

“As a food-focused and operations-driven investment firm, we have taken a keen interest in the attractive bakery sector, and we are excited to bring our specialized expertise and deep food network to bear to help amplify and accelerate the company’s mission to Rise above its customers’ expectations one bite at a time.”

Rise was advised by Morgan Stanley & Co. LLC as lead financial advisor in addition to Harris Williams. Houlihan Lokey and Stifel are serving as financial advisors to Platinum Equity and Butterfly, and Bank of America Securities is providing financing for the acquisition. Gibson, Dunn & Crutcher LLP and Simpson Thacher & Bartlett are serving as legal advisors to Platinum Equity and Butterfly, and Willkie Farr & Gallagher LLP is providing debt financing counsel.