The acquisition of New French Bakery to Chicago-based private equity firm Arbor Investments was announced yesterday. The bakery specializes in old-world style breads and has a facility in Seward.
Peter Kelsey, who started the company, was originally looking for an investor to help expand the bakery’s operations, according to a report today in the Star Tribune. Arbor Investments offered to buy the company, and Kelsey accepted.
“It’s the American dream,” Kelsey told the Star Tribune, “I built a business to $40 million in revenue this year, but I didn’t have a nickel for my retirement or kids’ education. My oldest son is going to college this fall. I’m facing a big financing hurdle. I took the money.”
“We were drawn to New French Bakery due to the Company’s superior quality products and reputation in the baking industry,” said Brody Lynn of Arbor Investments. “The Company has thrived under the ownership of Peter Kelsey, who was recently named Minnesota’s Small Business Person of the Year, and we are thrilled to be acquiring a business as it enters its next phase of growth.”
New French Bakery will continue to operate out of its existing facilities according to Arbor Investments. Kelsey has a contract to continue work at the company for a year in the role of consultant.