Crown Bakeries, a portfolio company of Arbor Investments, has acquired Bagel Boy, the largest manufacturer of premium, New York-style bagels in New England.
Crown Bakeries manufactures fresh and frozen breads, baked goods, and dough products for foodservice, food manufacturing and retail customers in both the United States and the Caribbean. The company operates 7 facilities, with more than 500 employees, and produces over 6 million baked goods daily including buns, English muffins, rolls, biscuits, frozen dough, artisan breads, and pastries.
Crown Bakeries (formerly The Bakery Companies) was founded in 1996 by Cordia and Tom Harrington and is headquartered in Nashville. Arbor acquired The Bakery Companies in partnership with CEO Cordia Harrington in September 2019 and rebranded the business as Crown Bakeries in March 2021.
In addition to bagels, Bagel Boy produces flatbreads, pitas and sandwich thins, and the company is a key baking partner to grocery retailers and consumer brands. Bagel Boy was founded in 1992 by Chuck Bouchrouche and is headquartered north of Boston in Lawrence, Massachusetts.
“Bagel Boy has thrived under Chuck’s leadership, and we’re excited to welcome the team in Lawrence to the Crown family as we continue to expand our footprint in the Northeast,” said Yianny Caparos, the president of Crown Bakeries. “Breakfast is the fastest-growing daypart in the United States and bagel sales are growing nearly three times as fast as the broader baked goods category.” In the restaurant industry, dayparting is the practice of dividing the business day into several parts – breakfast, brunch, lunch, and dinner.
“By adding Bagel Boy’s outstanding products to our existing portfolio, including croissants, biscuits, and English muffins, as well as our extensive sweet goods capabilities, we further enhance Crown’s position as the preferred one-stop-shop baker in the industry,” added Mr. Caparos.
“The Bagel Boy transaction marks the fourth add-on to the Crown portfolio in the last 15 months, giving the organization over 1,000 employees, serving customers across all channels – in retail, as a co-manufacturing partner for brands, as well as in foodservice,” said Chris Tuffin, a partner at Arbor. “We are thrilled not only to have grown our team and further expanded our product offering but now boast eight facilities with presence up-and-down the Eastern seaboard, establishing Crown as the preeminent baking partner for customers in North America.”
Prior to Bagel Boy, the three earlier add-on acquisitions by Crown were Michel’s Bakery, a Philadelphia-based maker of sweet baked goods in June 2021; the Smyrna, Georgia facility of Specialty Bakers in May 2020; and Steck Wholesale Foods, a South Dakota-based maker of English muffins and buttermilk biscuits in March 2020.
Arbor invests from $100 million to $250 million of equity per transaction in food, beverage, and related companies. Since its founding in 1999, the firm has acquired or invested in over 80 North America-based companies with a multiple on invested capital of 5.1x and an internal rate of return of 37%. Arbor is headquartered in Chicago and opened an office in New York City in 2016.
Alantra was the financial advisor to Bagel Boy on this transaction.
© 2021 Private Equity Professional | July 9, 2021
