Property Descriptions

This high-quality baked goods manufacturing company has been baking family recipes for generations, making unique products positioned as higher quality, yet value brand in the marketplace. The business is seeking a strategic merger or acquisition to strengthen its channel access and scalability. The business holds multiple certifications such as, SQF Level 2 food safety, Costco Supplier Assurance, and Gluten Free (GFCO). This is a growth opportunity that would allow a strategic partner to realize significant and immediate efficiencies and scale. The opportunity comes with significant assets in the form of inventory, equipment, and IP, as well as a significant pipeline of client revenue in diverse distribution channels. The business operates a recently upgraded, combined 33,000 SF state-of-the-art food processing facility and distribution center. The facility is capable of accommodating contract baking opportunities that allow other baking companies to grow sales and compete in the ever-changing food specialty marketplace. The facility has five Double Rack Ovens. Several Depositors and Cutters allow for the production of Nozzle Squirted, Extruded, and Wire Cut baked goods. Operations are semi-automated, enabling the company to provide, both a branded and capacity opportunity as the company currently operates 1 shift/5 days a week. The business operates with a solid team of Managers for quality assurance, logistics, and production. Part of the growth plan as well as planned expansion includes new products, leveraging opportunities in branded, co-packing and private label. A strategic partner could realize significant and immediate efficiencies gained by merging management expertise and building on combined scale. Current sales distribution is through direct sales to distributors such as DPI, Kehe, GFI, and other smaller distributors, Direct to Consumer (via the website), and some specialty stores. The company also has an agreement to sell directly with some large national chains such as TJ Max, Ross, and Tuesday Morning. The Cookie, Cracker and Pasta Production industry experiences stable demand for its products as they are well- established as part of the diets of consumers, although changing trends have prompted operators to innovate new products in recent years. However, diets that cut out carbohydrates and wheat-based goods have stifled industry growth significantly. Conversely, the rise of popular cooking TV shows and other content have made younger generations increasingly purchase their own pasta, baking mixes and dough to prepare meals and desserts at home. Although increasing disposable income during the five-year period to 2022 has enabled consumers to upgrade to more premium brands and varieties, it has also enabled consumers to purchase a broader range of alternative products. The industry is expected to continue to grow over the five years to 2027, with revenue anticipated to increase at an annualized rate of 0.2% to $26.7 billion. Rising discretionary income is expected to enable consumers to purchase a greater volume of snacks and trade up to branded and premium products at retail stores. In addition, as health and nutrition become more important for customers, demand for specialty products, such as gluten-free, organic and nutrient-enhanced foods, is expected to rise and support operators' growth. Increasing demand for specialty products abroad will likely boost demand for industry exports over the next five years, further supporting revenue growth. Detailed Information Certifications: SQF Level 2 food safety, Costco Supplier Assurance, and Gluten Free (GFCO). Working Capital target Included in price: 633K