One Equity Partners (OEP) has announced its acquisition of CraftMark Bakery, with the transaction set to finalize in the second quarter of 2025. Based in Indianapolis, Indiana, CraftMark Bakery operates as a wholesale producer of various bakery products including bread dough, cookie dough, muffins, flatbread, baked cookies, and filled dough. OEP, a middle market private equity firm, recognizes significant growth potential in the North American frozen bakery market, particularly in foodservice and in-store bakery segments. According to Joseph Huffsmith, Partner at OEP, “The North American frozen bakery space is a large, growing, and fragmented market in which OEP has previous experience.”
CraftMark’s Impressive Production Capabilities
CraftMark Bakery has established itself as a major player in wholesale baking with its state-of-the-art facility in Indianapolis. The company operates a modern, highly automated bakery featuring seven production lines capable of producing over 500 million pounds of bakery products annually. This exceptional capacity positions CraftMark as a significant supplier to quick-service restaurants and in-store retail bakeries throughout North America.
The company’s product lineup covers a diverse range of bakery items including bread dough, cookie dough, muffins, flatbread, baked cookies, and filled dough. CraftMark’s focus on quality and efficiency has helped it secure relationships with numerous blue-chip customers in the food service industry. Their commitment to consistency has been particularly valuable as bakery industry costs continue rising across the sector.
With its cutting-edge production facilities, CraftMark has positioned itself to meet the growing demand for premium wholesale bakery products. The company’s ability to maintain high-quality standards while operating at scale has been central to its success in attracting and retaining major clients in both the restaurant and retail sectors.
Strategic Rationale for the Acquisition
OEP’s decision to acquire CraftMark Bakery aligns perfectly with the firm’s previous experience in the bakery industry. The private equity firm has identified the frozen bakery market as a sector ripe for consolidation, presenting numerous growth opportunities. This acquisition represents a strategic move to capitalize on OEP’s industry knowledge while addressing the fragmented nature of the market.
Joseph Huffsmith, Partner at OEP, highlighted the strategic importance of this acquisition, stating, “Our investment in CraftMark presents an opportunity to participate in the attractive foodservice and in-store bakery segments, each with considerable growth potential.” This perspective demonstrates OEP’s confidence in bakeries’ challenges and opportunities in 2025 and beyond.
The acquisition is expected to create significant value through expansion of CraftMark’s already impressive customer base. OEP plans to leverage its resources and expertise to help CraftMark enhance its service offerings through strategic mergers and acquisitions, as well as targeted operational investments. This approach reflects OEP’s broader investment strategy of identifying high-potential companies in growing markets.
Growth Plans Under New Ownership
Under OEP’s ownership, CraftMark Bakery is poised for substantial growth through both organic expansion and strategic acquisitions. Kurt Seagrist, CEO of CraftMark Bakery, expressed enthusiasm about the partnership, viewing OEP as an ideal partner to support the company’s next growth phase. This optimism comes amid broader concerns about US baking industry tariff threats that could impact the sector.
The growth strategy includes expanding into new geographic markets, diversifying product categories, and targeting additional customer segments. CraftMark will continue investing in its base operations to enhance efficiency and production capacity. Seagrist commented, “We look forward to our partnership with One Equity, an investor with proven expertise in growing specialty baked goods businesses, to build out our operations and usher CraftMark into its next phase of growth.”
This expansion plan comes at a time when competition for baking industry awards entries highlights the increasing innovation across the sector. CraftMark’s focus on quality positions it well to gain recognition as it expands its reach. The company’s LinkedIn profile (https://www.linkedin.com/company/craftmark-bakery/) offers additional insights into their corporate culture and growth trajectory.
Impact on the Frozen Bakery Market
This acquisition represents a significant development in the North American frozen bakery landscape. As OEP brings its resources and industry expertise to CraftMark, the transaction could trigger further consolidation within this fragmented market. Companies like CraftMark are increasingly valuable due to their ability to serve both foodservice and in-store bakery segments efficiently.
The frozen bakery market has been growing steadily as consumers and food service providers increasingly value convenience without sacrificing quality. CraftMark’s modern production capabilities align perfectly with this market trend. Their automated systems allow for consistent quality at scale—a crucial advantage in serving major quick-service restaurant chains and retail bakeries.
This deal may also influence how other players in the market position themselves for future growth or potential acquisitions. As larger companies like Sammontana expand North American bakery operations, strategic partnerships become increasingly important. The CraftMark acquisition signals OEP’s confidence in the sector’s long-term growth prospects despite current economic uncertainties.
CraftMark’s Product Innovation Focus
Under OEP’s guidance, CraftMark is likely to accelerate product development efforts to stay ahead of changing consumer preferences. The company’s current product lineup already includes a diverse range of items, from basic bread dough to more specialized filled dough products. This versatility provides a strong foundation for future innovation.
The bakery’s modern facilities are designed to accommodate product experimentation while maintaining efficiency. This capability will be crucial as CraftMark looks to expand its product categories. Their focus on both quick-service restaurants and in-store retail bakeries provides valuable market feedback that can inform product development priorities.
Industry trends indicate growing consumer interest in premium frozen bakery products with clean labels and artisanal qualities. CraftMark’s production technology allows it to create products that meet these expectations while maintaining the scale necessary to serve major clients. This balance of quality and quantity positions the company well for future growth in specialty product categories.
Transaction Details and Advisory Support
The acquisition transaction has been structured with support from several experienced advisory firms, ensuring both parties achieve their strategic objectives. Kirkland & Ellis LLP provided legal counsel to OEP throughout the acquisition process. KPMG LLP delivered accounting and tax advisory services to support the transaction’s financial aspects.
Steel City Private Credit secured the debt financing necessary for the deal, while Harris Williams acted as the financial advisor to CraftMark Bakery. These partnerships were instrumental in structuring a transaction that aligns with both companies’ growth strategies and financial objectives. The involvement of these reputable firms underscores the significance of this acquisition in the bakery industry.
The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals. Once finalized, this acquisition will mark an important milestone for both CraftMark Bakery and One Equity Partners as they work together to capitalize on opportunities in the frozen bakery market. The collaborative approach to transaction structuring suggests a thoughtful integration process is planned to preserve CraftMark’s operational strengths while enabling accelerated growth.