Rise Baking Company's owner to explore $2.5 billion sale -sources

(Reuters) - The private equity firm that owns Rise Baking Company is preparing to launch a sale process for the U.S. bakery provider that could value it at around $2.5 billion, including debt, according to people familiar with the matter.

Olympus Partners has hired investment bank Morgan Stanley to run a sale process for Rise Baking, the sources said.

Rise Baking generates around $220 million in 12-month earnings before interest, taxes, depreciation and amortization, the sources added, asking not to be identified because the matter is confidential.

Morgan Stanley and Olympus declined to comment. Rise could not be reached for comment.

Headquartered in Minneapolis, Rise makes breads, cookies, cakes, muffins, icings and more for North American bakeries, grocery stores and foodservice providers.

Olympus acquired Rise in 2018 from private equity firm Arbor Investments for an undisclosed amount. In 2021, it combined Rise with Brill, which was the North American bakery business of Rhone Capital-backed Baker & Baker Group. Last month, Rise expanded into the pie category when it acquired two pie facilities.

Private equity firms are active players in the food manufacturing space. Last month, Clayton, Dubilier & Rice acquired Shearer's Foods, a manufacturer of salty snacks, in a $2.85 billion dollar deal, according to sources.

(Reporting by Abigail Summerville in New York; Editing by Sandra Maler)

By Abigail Summerville