Specialty Bakers’ recapitalization in September 2010 represents the fourth investment by Fund IV.
Tracing its roots back to 1901, Specialty Bakers is the primary producer of Ladyfingers in the United States as well as a leading provider of other high-quality branded and private label baked products such as French Twirls™ (Crème Horns), Dessert Shells, Cake Rolls, and Angel Food Cakes. Its products are distributed primarily to grocery stores, mass merchants and other retailers for sale in their “in-store” bakery sections.
At the time of the recapitalization, the company produced these specialty cakes and pies at two bakeries employing 250 people located in Marysville and Lititz, Pennsylvania. The company experienced a fire in 2018 at its Lititz pie manufacturing facility causing it to cease operations at this location and exit its substantial pie business. Soon thereafter, Stonebridge and Specialty Bakers management team identified the Bake One bakery business, based in Smyrna, Georgia, as a key acquisition target based on Bake One’s historical customer base, attractive product line, and substantial recent investments in equipment and production capability. Within nine months of the fire, Specialty Bakers acquired selected assets of the former Bake One operations and implemented the Bake One business into its day-to-day operations. The acquisition added compelling products well-suited to today’s consumer preferences such as mini cinnamon rolls, mini Danish, croissants, brownie bites, tea cakes, and mini muffin products.