Keystone Bakery Holdings, LLC
Investment Date
December 2000
Situation Type
Owner-Operator Recapitalization
Keystone originally partnered with the Streeter family to recapitalize Freed’s Bakery. The family-run business had one brother/wife team seeking to retire, and another brother who desired to continue with the business.
Headquarters
Manchester, NH
Other Facilities
Frankfort, NY; Du Quoin, IL
Products/Services
Fully finished thaw-and-serve cupcakes, donuts and cookies; including holiday/seasonal and everyday themed products
Customer Base
Leading in-store bakery / grocery chains, as well as leading foodservice, international and distribution customers
Interesting Fact
Created the mini one-ounce cupcake seen in grocery stores across the country
Holds the largest single donut production facility in the country
Acquisitions During Ownership
Freed’s Bakery (2000): Original platform investment
Granny’s Kitchens (2006): Acquisition of a donut business serving the in-store bakery and foodservice channels from an entrepreneur
Hearland Baking USA (2009): Acquisition of a niche cookie bakery serving the in-store bakery channel from several entrepreneurs
Exit
Keystone Bakery Holdings, LLC was acquired by Maplehurst Bakeries, a subsidiary of George Weston Limited (TSX: WN), in 2010
“I WAS FORTUNATE TO HAVE PARTNERED WITH KEYSTONE CAPITAL SEVEN YEARS AGO. TOGETHER WE HAVE GROWN KEYSTONE BAKERIES FROM A ONE FACILITY, 90 EMPLOYEE, $20 MILLION BUSINESS INTO A $125 MILLION, THREE FACILITIES, AND 600 EMPLOYEE COMPANY.
OUR SUCCESS CAN BE ATTRIBUTED TO THE OPERATING PHILOSOPHY THAT IS CORE TO KEYSTONE’S FOUNDATION. WE RUN LEAN ORGANIZATIONS THAT ARE FOCUSED ON EXCELLENCE WITHIN THEIR INDUSTRIES, WITH AN EFFECTIVE UTILIZATION OF LEVERAGE TO GROW AND ACQUIRE BUSINESSES. NO OUTSIDE INVESTORS, NO EXCESSIVE LEVERAGE TO BURDEN THE BUSINESS, JUST SMART PEOPLE RUNNING FOCUSED BUSINESSES LIKE THEY SHOULD, LIKE OWNERS NOT MONEY MANAGERS.”
- KEVIN MCDONOUGH, PRESIDENT, KEYSTONE BAKERY HOLDINGS
