NASHVILLE, TENN. – In a move that dovetails into its foodservice business and expands its geographic reach, The Bakery Cos., Nashville, Tenn., announced it acquired Steck Wholesale Foods of North Sioux City, SD. Terms of the transaction were not disclosed.
Founded in 2004, Steck bakes and distributes English muffins and biscuits for a wide range of customers, with a focus on leading grocery retailers and convenience stores.
The Bakery Cos., a manufacturer of fresh and frozen bread, baked foods and dough products, is owned by Arbor Investments. In October, the Chicago-based private equity firm announced the recapitalization of The Bakery Companies with Cordia Harrington, its founder and chief executive officer.
“Steck is a hand-in-glove fit for The Bakery Cos.,” Ms. Harrington said. “Their focus on manufacturing for retail customers is complementary to our existing strength in foodservice, and the South Dakota facility expands our geographic manufacturing footprint into the upper Midwest.”
Specifically, Ms. Harrington pointed out that The Bakery Cos. also gains additional production lines within its core English muffin and biscuit categories. She said the Steck purchase not only provides incremental capacity, but also creates redundancy in The Bakery Cos.’ manufacturing capabilities at geographically dispersed facilities.
“Providing a redundant supply chain is more critical to our customers today than ever before,” she said.
The team of industry veterans at Steck will continue to operate the business out of its existing manufacturing facility. Craig Stanley will be general manager of the organization with Doug Heck and Jim Calvert continuing in their engineering and sales roles.
Yianny Caparos, president of The Bakery Cos., said he and his brother George Caparos, chief development officer, have known the management team at Steck for more than a decade.
“We’re thrilled to welcome the Steck associates into our Bakery Cos. family,” Mr. Caparos said. “They’ve built and run an impressive facility with an impeccable reputation and track record in the industry. It’s energizing to find partners who share our broader strategic vision for The Bakery Cos.”
Mr. Caparos noted that strategic focus includes capturing a greater share of the baked foods market that targets the morning eating occasion.
“The acquisition of Steck is another step forward in our vision of being the leading provider of breakfast carriers in all channels that make up the greater food industry,” Mr. Caparos explained.
Mr. Stanley added the two companies have a lot in common.
“There is a tremendous overlap in our businesses and cultures, and we are honored to be joining The Bakery Cos. family,” he said. “Together, we can leverage the combined scale of our businesses, offering an even more comprehensive portfolio to our customers. We are truly excited about this next chapter and committed to ensuring a smooth transition.”