FOR IMMEDIATE RELEASE
Klosterman Baking Company Changes Ownership to Fuel Future Growth
New Water Capital L.P. is a private equity firm focused on supporting businesses in transition, building on their unique culture and strengths
CINCINNATI (July 27, 2022) – Cincinnati-based Klosterman Baking Company (Klosterman), a leading producer of fresh and frozen bakery products, has been acquired by an affiliate of New Water Capital Partners L.P. (New Water), effective July 8, 2022. Details of the sale are not being disclosed.
Founded in 1892 by the Klosterman family, the company produces fresh and frozen breads, buns, flatbreads, organic breads, artisan breads, donuts and other bakery products serving an extensive, well-established national customer base of restaurants and other foodservice operators, grocery retailers, convenience stores, and institutional customers. Today, Klosterman Baking Company operates 17 bakeries and distribution facilities across eight Midwest states.
The acquisition comes 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.”
The acquisition positions Klosterman for continued success and long-term growth potential through investing in updates and enhancements to increase production and efficiencies through its facilities in the years to come. The company remains headquartered and operated in Greater Cincinnati.
“Through this strategic partnership with New Water, Klosterman will be able to better systemize operations, enhance distribution channels and position our company for further growth,” said Klosterman President Ross Anderson.
“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 New Water Principal Anuj Singh.
“We are grateful to be able to partner with the company to continue building upon that culture and legacy,” Singh added. “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.”
“Through our partnership, Klosterman will look to expand its product portfolio and geographic distribution footprint to better serve its growing customer base through a combination of organic and inorganic growth levers,” said New Water Vice President Nick LaRosa.
“The capital investment and management experience in the food sector New Water brings, will give us the tools we need to scale to meet existing customer demand,” Anderson added. “We’re all very excited about the enormous potential for Klosterman Baking Company with this new partnership with New Water.”
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About Klosterman Baking Co.
Founded more than 125 years ago, Klosterman Baking Company has grown to be one of the largest privately-owned bakeries in the Midwest. Headquartered in Cincinnati, Klosterman Baking Company provides fresh hearth breads, rolls and a variety of other bakery items to more than 8,000 restaurants, grocery stores, hospitals and schools in Ohio, Kentucky, Indiana, Northern Tennessee, and Western Pennsylvania. Klosterman distributes quality frozen products throughout the United States and maintains strong partnerships with several food service distributors to ensure that Klosterman products are available to any customer nationwide. For more information, visit www.klostermanbakery.com.
About New Water Capital L.P.
New Water Capital L.P. is a private equity firm focused on lower-middle market companies in the consumer products and industrial manufacturing and services sectors with revenues of $30 million to $300 million. New Water Capital’s collaborative transaction and operating model is built specifically to support companies in transition, building on their unique cultures and strengths. For more information, please visit www.newwatercap.com.