Keystone Capital, Inc. (“Keystone”) is pleased to announce it has completed an investment partnership with Hometown Foods USA, a manufacturer of bagels and cake products sold to in-store bakeries, club stores, and the foodservice channel.
Operating over a history spanning ~25 years, Hometown Foods USA is currently run by the 4th generation of the Schwartzberg family and is based in Miami, Florida. Its product offering includes traditional Mrs. W’s Wonderlicious™ bundt cakes, New York style bagels, indulgent crème cakes, crumb bundt cakes, and loaf cakes. The Company supplies their high-quality products to some of the largest club store and grocery chains in the country. For more information on Hometown Foods USA, please visit www.hometownfoodsusa.com.
“Joining forces with Keystone will provide us with a greater level of resources and capabilities to serve our client partners and bring Mrs. W’s Wonderlicious™ bundt cakes and our other high-quality bakery products to an even wider audience – all while preserving our unique culture and unwavering commitment to baking quality and innovation.” noted Troy Schwartzberg, President of Hometown Foods USA.
Commenting on the deal, Chaoran Jin, Managing Director of Keystone, stated, “We are excited to partner with the Schwartzberg family and continue the legacy they’ve built at Hometown Foods. We see a great opportunity to further enhance Hometown’s customer reach, product capabilities as well as channel expansion through organic growth and strategic acquisitions.”
Keystone has reunited with Kevin McDonough who will operate as Executive Chairman and Strategic Advisor to Hometown Foods USA. Kevin most recently served as the President of Weston Foods Frozen and Biscuit Businesses and prior to that he was the President of Keystone Bakeries Holdings, LLC (“KBH”). Weston Foods acquired KBH, Keystone Capital’s bakery platform, in 2010. Kevin noted “It’s exciting to again partner with Keystone to build a new platform in Bakery and I’m looking forward to working with Troy and the entire Hometown Foods team.”
Keystone and Hometown Foods USA will actively seek acquisition opportunities in the bakery space. Parties with knowledge of potential investment opportunities in these segments are encouraged to contact Keystone Capital.
Terms of the transaction are not being disclosed. Senior debt financing was provided by CIBC Bank USA and legal counsel was provided by Honigman Miller Schwartz and Cohn, LLP.