CINCINNATI — New Water Capital Partners LP, a Boca Raton, Fla.-based private equity firm focused on lower-middle market companies, has acquired Klosterman Baking Co., effective July 8. The Cincinnati-based baker of fresh and frozen baked foods had been owned and operated by the Klosterman family since it was founded in 1892.
Klosterman operates 17 bakeries and distribution facilities across eight Midwest states. The company produces fresh and frozen bread, buns, flatbread, organic bread, artisan bread, donuts and other baked products serving an extensive, well-established national customer base of restaurants and other foodservice operators, grocery retailers, convenience stores and institutional operations.
The company said the acquisition came after the Klosterman family made the decision together to step away from the industry.
“As a family, we decided it was in our best interest and the interest of the company that a new organization take the lead of the business,” said Chip Klosterman on behalf of the Klosterman family. “New Water’s proven record of success in building on the strengths of partner companies to reach the next level of growth and success was vital to us in our selection process and makes them the preferred partner to continue our family’s legacy.”
According to Klosterman, the acquisition by New Water will position the company for continued success and long-term growth potential through investing in updates and enhancements to increase production and efficiencies through its facilities in years to come.
“Through this strategic partnership with New Water, Klosterman will be able to better systemize operations, embrace channels and position our company for further growth,” said Ross Anderson, president of Klosterman Baking.
“Over the course of four generations, the Klosterman family has built a remarkable business that has a reputation for putting customers and employees first,” said Anuj Singh, principal of New Water. “We are grateful to be able to partner with the company to continue building upon that culture and legacy.
“With the ever-growing demand for consumer convenience, the expansion of the fast-food and quick-serve restaurant sector, and the recent inflation-driven appetite for home-served meals, Klosterman is well-positioned to withstand and benefit from a fluctuating economic and consumer environment.”
Mr. Anderson added, “The capital investment and management experience in the foodservice sector New Water brings will give us the tools we need to scale to meet existing customer demand.”In addition to Klosterman Baking, New Water’s portfolio includes frozen foods manufacturers The Perfect Bite Co. and Pegasus Foods. New Water previously held fresh foods provider Custom Made Meals, which it acquired in 2017 and sold in May 2021.