July 28, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Chicago-based Entrepreneurial Equity Partners (e2p), a food chain-focused investor in established food and beverage brands, contract food manufacturers, food service, and CPGs, has acquired Roskam Baking Company with intentions to merge it with Organic Milling, one of its existing portfolio companies since December 2021. 

In May 2021, e2p announced that it had closed its inaugural fund – Entrepreneurial Equity Partners I (e2p I or Fund I) – with aggregate capital commitments of $423 million.

At the time that the announcement was made, e2p I had made five investments to-date: Sara Lee Frozen Bakery; Charcuterie Artisans; Salm Partners, the largest manufacturer of fully cooked sausages using a specific cooked-in-package method in the U.S.; Mediterranean foods provider World Food Holdings; and Ya Ya Foods, one of the largest co-packers of aseptic food and beverage products in the U.S.

“We are pleased and humbled by the investor support for our inaugural fund,” said Mark Burgett, managing partner, e2p, at the time. “We view Fund I’s successful capital raise as a testament to the team we have built and our demonstrated ability to deploy capital into compelling opportunities.”

The latest addition to Fund I’s portfolio is Roskam Baking – a leading contract manufacturer founded in Grand Rapids, Michigan, in 1923 that works with many of the most iconic food brands and companies in America including Kellogg Co., General Mills, and Frito-Lay.

The company is a scaled, diversified bakery operation with six facilities comprising more than 2 million square feet of manufacturing, warehouse, and office space, including 30+ manufacturing and packaging lines.

This structure gives the company the ability to produce a uniquely diverse range of frozen, refrigerated, and shelf-stable food products, while handling allergens such as peanuts and dairy, as well as specialty product types, including gluten-free and non-GMO lines, in a safe, controlled environment. 

“In this case, we are fortunate to be acquiring the entire balance of the business and intend to maintain the Roskam name, which has an iconic reputation in the industry.  The platform is scaled and well-diversified, with over $600 million in sales,” said Burgett.

“Additionally,” Burgett continued, “we simultaneously merged Roskam with our existing portfolio company Organic Milling, which has for over 60 years been a leading contract manufacturer of “better-for-you” granola, snacks and ingredients for leading brands in the category.”

“We plan to execute our consistent and repeatable playbook: growing the business by executing specific and identified initiatives to drive organic growth alongside existing and new customers and by pursuing strategic, transformative acquisitions that will enhance our manufacturing capabilities and expand our geographic reach.”

This deal marks the third transaction executed between Burgett and Roskam. Burgett met Mr. Roskam in Costa Rica almost 20 years ago, and over the course of the ensuing years (while with a different firm) Burgett acquired two businesses, including the assets that formed the core of Hearthside Food Solutions, from the Roskam family. Most recently, Mr. Roskam reached out to Burgett when considering divesting the balance of the family business.

“I sought out Mark and the e2p team for a third time because of their deep expertise in contract manufacturing and the reliability they’ve shown as a partner to employees, customers, and the Grand Rapids community,” said Bob Roskam.

“For the past 100 years, my family has grown Roskam into a food manufacturing company with an industry-leading reputation for quality and reliability. I am confident e2p is the best partner to carry on our culture of excellence and long legacy of unmatched customer satisfaction,” added Raskom. “In many cases, our customers have entrusted Roskam’s adept management and special capabilities to meet their unique needs for multiple generations, and I believe e2p is worthy of that trust.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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