New Water Capital acquires Klosterman Baking Co.

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New Water Capital acquires Klosterman Baking Co.

27 Jul 2022

Jordan Winter

Jordan Winter is a journalist who wants to learn more and teach others about the world through storytelling. Dedicated to positive social change, her reporting is informed by years of experience writing, designing, and producing multimedia content for mission-driven publications and nonprofits.

As the creative director for Commercial Baking, Jordan is bringing life to the stories of diversity and sustainability in the commercial baking industry.

BOCA RATON, FL — An affiliate of New Water Capital Partners, a private equity investment firm focused on lower-middle market companies, has acquired Cincinnati, OH-based Klosterman Baking Co.

Founded in 1892, Klosterman is a leading producer of fresh and frozen breads, buns, flatbreads, organic breads, artisan breads, donuts and other bakery products. The company serves an extensive, well established national customer base of restaurants and other foodservice operators, grocery retailers and convenience stores, as well as institutional customers. Today the company operates 17 bakeries and distribution facilities across eight Midwest states.

“Klosterman’s leading position as a producer and distributor of fresh and frozen bakery items to major grocer, restaurant and institutional customers offers a recession-resistant investment opportunity with excellent long-term growth potential,” said Anuj Singh, principal of New Water.

Singh noted that Klosterman is well positioned to benefit from a fluctuating economic and consumer environment amidst growing demand for consumer convenience, expansion of the quick-serve restaurant sector and inflation-driven appetite for home-served meals. Chip Klosterman, a representative of the Klosterman family, said New Water can guide the company to unprecedented levels of growth.

“Klosterman's leading position as a producer and distributor of fresh and frozen bakery items … offers a recession-resistant investment opportunity with excellent long-term growth potential.” —Anuj Singh | principal | New Water Capital

“New Water has a proven record of success in recognizing and building on the strengths of their partner companies to help them reach the next level of growth and success,” he said. “Their respect for the positive company culture Klosterman has nurtured over the past 130 years made them the preferred partner to take our company into the future.”

Ross Anderson, president of Klosterman, added that New Water’s capital investment and management experience in the food sector will help the bakery brand optimize its market position.

“New Water brings leadership and strategic expertise we can use to better systemize operations, enhance our distribution channels and position ourselves for further growth,” Anderson said. “We are excited about the enormous potential for Klosterman Baking Company under this new partnership.”

This acquisition adds to New Water’s presence in the manufactured foods sector, which includes frozen foods developer The Perfect Bite Co. and frozen foods manufacturer Pegasus Foods. New Water previously held fresh foods provider Custom Made Meals (CMM), which it acquired in 2017 and sold in May 2021, after expanding CMM’s US customer base from approximately 6,000 grocery retail locations to more than 15,000 locations nationwide.

Lincoln International LLC served as the exclusive financial advisor to Klosterman and the sellers.

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