Target Information

Benford Capital Partners ("Benford Capital" or "BCP"), a private equity firm based in Chicago, has successfully acquired Legacy Bakehouse, LLC ("Legacy Bakehouse," "Legacy," or "the Company"). This acquisition is in collaboration with the President of Legacy, Peter Sardina, who will continue to lead the Company after the closing of the deal. This marks the second platform investment made by Benford Capital Partners II, LP.

Founded in 1917 and located in Waukesha, Wisconsin, Legacy Bakehouse is a prominent developer and manufacturer of baked snack ingredients. The Company specializes in products such as bagel chips, rye chips, pita chips, and various ingredients for leading consumer packaged goods (CPG) and retail clients. Additionally, Legacy holds the brand and is the manufacturer of Pinahs Rye Chips and Snack Mixes.

Industry Overview

The snack food industry has experienced significant growth in recent years, driven by changing consumer preferences and a shift towards healthier snack options. In the United States, the demand for innovative and convenient snacks continues to rise, offering robust opportunities for established and emerging companies alike.

In Wisconsin, the food processing sector, including baked snacks, contributes substantially to the state's economy. The region benefits from an abundance of agricultural resources and a strong manufacturing base, which positions companies like Legacy Bakehouse to excel in producing high-quality snack products.

With a growing emphasis on health-conscious eating, consumers are increasingly seeking snacks that are not only tasty but also nutritious. This trend has prompted manufacturers to innovate and diversify their product lines to meet evolving consumer demands, illustrating the competitive dynamics of the industry.

Furthermore, the expansion of retail distribution channels and the rise of e-commerce have also provided avenues for snack companies to reach a wider audience. As a result, the landscape for companies involved in the production of snack components continues to become more competitive and lucrative.

Rationale Behind the Deal

The acquisition of Legacy Bakehouse presents significant growth opportunities for both BCP and Legacy. By investing in operational capacity and enhancing sales capabilities, the partnership aims to drive organic growth while maintaining a commitment to exceptional customer service.

Additionally, BCP intends to actively pursue add-on acquisitions of other snack component developers and manufacturers to expand Legacy's functional capabilities in the market. This strategic approach is designed to solidify Legacy's position in the industry and maximize long-term value for stakeholders.

Investor Information

Benford Capital Partners is a prominent private equity firm focused on investing in lower middle-market companies across various sectors, including food and beverages. The firm seeks to partner with management teams to deliver operational improvements and drive growth.

With the acquisition of Legacy Bakehouse, BCP continues its strategic focus on the food sector, indicating a robust interest in capitalizing on the growing snack foods market dynamics. The firm’s extensive expertise in operational enhancements is expected to benefit Legacy's growth trajectory.

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This acquisition may be a solid investment for Benford Capital Partners, given the advantageous positioning of Legacy Bakehouse within a thriving industry. The longstanding operational history of Legacy, combined with its established customer base and diverse product offerings, presents a compelling value proposition.

The dedicated leadership of President Peter Sardina and the existing management team are crucial assets that can facilitate the integration of BCP’s strategic initiatives, ultimately enhancing the Company's market share and profitability.

Moreover, the planned investments in operational capacity and potential acquisitions are likely to yield positive financial outcomes in the near future. By focusing on scalability and efficiency, BCP and Legacy can leverage market trends and consumer preferences in their favor.

Overall, this deal appears to be a strategic match, leveraging BCP’s financial and operational expertise alongside Legacy's strong market position, paving the way for continued growth and sustained success.

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