AUSTIN, TEXAS — Private equity firm Cotton Creek Capital has acquired Ne-Mo’s Bakery, LLC, a producer of cakes, cookies, cinnamon rolls and other sweet baked goods for convenience stores, retailers, restaurants and hospitality customers. Financial terms of the transaction were not disclosed.
Ne-Mo’s said the acquisition will allow it to accelerate growth with manufacturing capacity and product innovation. The company’s products currently are offered in more than 50,000 convenience stores across the United States. Headquartered in San Diego, Ne-Mo’s operates two facilities in Escondido, Calif.
“We are excited to partner with Cotton Creek,” said Mike Chaignot, chief executive officer of Ne-Mo’s. “A shared commitment to operational excellence and commercial investment will allow us to further expand our market presence, invest in new products, and continue building on Ne-Mo’s long-standing tradition of delivering delicious, high-quality baked goods. Cotton Creek’s extensive experience in baked goods made them the ideal partner for Ne-Mo’s.”
Based in Austin, Cotton Creek invests in lower middle market companies in the food and beverage, infrastructure services, specialty chemical, building products, and industrial service sectors. Its food and beverage holdings include Sterling 1971 Holdings, Inc., a San Antonio-based specialty bakery products manufacturer that supplies shelf-stable baked foods and gourmet-quality items to the food industry.
“Mike (Chaignot) and his team have a built an exceptional brand known for its differentiated, high-quality products,” said Antonio DiGesualdo, managing partner at Cotton Creek. “We look forward to supporting Ne-Mo’s as it introduces its cakes and breads to an expanded consumer population.”
