PE Firm Acquires Snackwerks, Specialty Bakers To Form Artisan Bakery

Private equity firm HC Private Investments has formed a new baked goods and snack manufacturing outfit, known as Artisan Bakery, via the acquisitions of Snackwerks and Specialty Bakers.

By “strategically combining” these two mid-scale bakeries, Snackwerks founder Jeff Grogg told Nosh that the new entity will be able to better serve its branded and private label clients “within a cohesive network.” Terms of the deal were not disclosed.

Specialty Bakers CEO Jack Eckerd will take the helm at Artisan and continue in his role to lead the combined company. Grogg will retain a significant equity stake in the new business and, along with industry veterans Liz Barnett, Purav Patel and Kirk Trofholz, will join the company’s board of directors with Trofholz as executive chairman.

“I am excited to partner with HCPI and Kirk Trofholz to build a bakery platform that emphasizes speed-to-market, innovation, and customer collaboration,” said Grogg, in a press release. “Snackwerks’ agile manufacturing and Specialty Bakers’ established distribution create the ideal combination to serve both emerging and established brands in a way traditional bakeries cannot.”

Artisan Bakery brings over 125 years of contract manufacturing and baked good production expertise, and the combination unlocks a range of synergies. Both companies retained their respective headquarters in Battle Creek, Mich., and Marysville, Pa. Snackwerks currently operates a 40,000 sq. ft. facility with three semi-automated production lines in addition to 30,000 sq. ft. of warehouse space.

According to Grogg, Snackwerks will gain access to more retailers through Specialty Bakers’ sales team, which claims it distributes to over 90% of supermarkets nationwide. The joint business will also be able to invest more capital to grow faster and provide its customers with “strategic solutions for them to be more innovative.”

The combined company will now offer co-manufacturing for cookies, granola, snack bars and a range of bakery and dessert products that are sold at retailers nationwide. Snackwerks also brings significant R&D capabilities and a direct link to CPG industry consultancy firm JPG Resources, which is owned and operated by Grogg; JPG acquired RodeoCPG’s R&D team in 2023.

“This move allows me to remain involved while also putting a little more time and energy into JPG and RCV Frontline,” Grogg said. “Part of what was enticing to me about this tie-up is that Artisan Bakery really wants to maintain the culture and team that has made Snackwerks successful, and mostly wants us to stay on track with what we’ve been doing rather than bringing in a radical change or unrealistic expectations.”

According to Trofholz, the combination will allow the manufacturer to utilize high-quality ingredients and flexible packaging formats to “create leading indulgences.”

“Our vision is to preserve the craft and quality of each bakery while providing the operational scale, R&D support, and strategic leadership needed to thrive in a fast-evolving food landscape,” said Trofholz in the release. “As grocery retailers continue to prioritize prepared foods to attract and increase foot traffic, we believe we are well positioned to offer in-store bakery customers a differentiated model.”

Artisan Bakery joins its new parent’s portfolio, which includes metal and plastic manufacturing firms as well as chef-driven premium butter brand Epicurean Butter. Brown Gibbons Lang & Company acted as financial advisors to Specialty Bakers, and Winston & Strawn LLP served as legal counsel.