US-based Ellison Bakery has been acquired for an undisclosed amount by QualiTech, a manufacturer specializing in plant nutrition, animal nutrition, and food ingredient products. This strategic move joins two key players in the food and beverage industry, signaling a significant shift in market dynamics.
QualiTech, located in Minnesota, is part of a portfolio managed by investment firm MidOcean Partners. The acquisition represents a transition from a local investor, Tilia Holdings, to a company focused on enhancing its presence in the food and drink business.
Founded in 1945 and headquartered in Fort Wayne, Indiana, Ellison Bakery specializes in producing a variety of baked goods, including cookies, snack bars, crunches, toppings, and inclusion ingredients for retail, food service, and private-label markets. The move to acquire Ellison highlights QualiTech’s intent to expand its offerings in a competitive market.
According to MidOcean’s team, Ellison was pinpointed as a top-priority acquisition target early in the underwriting due to its “highly complementary nature of its products to the ingredient solutions that QualiTech provides.” This alignment is crucial for tapping into food and drink consumer trends and positions both companies advantageously in the market.
Steven Loeffler, Managing Director at MidOcean, emphasized the significance of this acquisition: “The transformational combination of these two businesses, the first major acquisition following our investment in QualiTech, reinforces QualiTech’s position as a differentiated ingredients platform and provides an entry into compelling new product applications and end markets.”
The CEO of QualiTech, Rick Pedersen, expressed optimism about the merger: “Bringing Ellison into the QualiTech family will benefit both companies as well as our customers. Both organizations possess rich legacies of bespoke R&D, differentiated customer service, and superior product quality.”
The combined entity aims to enhance services, develop additional product capabilities, and broaden access to a larger market. This acquisition accelerates QualiTech’s strategy to lead the specialty ingredients sector, focusing on enhancing the sensory attributes of popular food products and paving the way for long-term growth.
Stephanie Chattillion, CEO of Ellison Bakery, reflected on the partnership: “We are excited to partner with QualiTech and leverage MidOcean’s resources and expertise in the food business to drive success for the combined company. QualiTech’s customer service approach aligns perfectly with our culture and commitment to delivering high-quality products.”
Looking ahead, Chattillion added, “We look forward to expanding the breadth of products that we can offer and creating a leading customized food inclusion and ingredients platform.” This merger not only aligns with current food and beverage industry trends but also positions both companies to better cater to evolving consumer preferences.
