Kronos Foods Acquires Country's Top Maker of Premium Baklava and Other Fillo-Based Desserts
Acquisition Broadens Product Line, Distribution Channels for Mediterranean Foods Producer
CHICAGO, ILL.—May 1, 2006: Kronos Foods, Inc., a platform company of Prospect Partners II, L.P. based in Chicago, has acquired the assets of Rain Creek Baking Company of Fresno , California . Rain Creek is the country's foremost specialty baker of the Mediterranean delicacy baklava and other premium handcrafted fillo dough-based pastries sold under the retail brands Sinbad Sweets®, Michael's and Rain Creek. Rain Creek's national customer base includes leading club stores, mass merchandisers and grocery chains.
Rain Creek management -- which includes Michael Muhawi, President; Timothy Smith, Vice President of Sales; and Donna Hardin, Director of Customer Relations -- will remain in their current positions and are shareholders of the new company, Rain Creek Baking Corp., now a subsidiary of Kronos.
"The acquisition of Rain Creek Baking is consistent with our goal of acquiring small niche leaders that can serve and strengthen Kronos's traditional heritage while providing new growth opportunities through their products and channels," says William V. Glastris, Jr., a principal at Prospect Partners, LLC.
"Rain Creek is a synergistic fit for Kronos," says Michael Austin, Kronos Foods' Chief Executive Officer. "Both companies make premium, high-quality products and are focused on product innovation and customer service. By marrying Rain Creek's strong retail presence with Kronos's strong foodservice presence, we can now offer a broader product line to more food outlets in more places -- and reach many more people with both classic and modernized Mediterranean foods."
"Rain Creek has a great team of people who share our excitement for the many growth opportunities inherent in our new partnership," adds T. Patrick Costello, President and COO of Kronos Foods.
About Kronos Foods, Inc.
Kronos Foods, Inc. is the nation's leading manufacturer of gyros meat, a leading producer of pita bread, tzatziki sauce and other Greek foods and a specialty foodservice distributor to local retail outlets as well as to restaurants, hospitals, businesses, schools and universities. The company offers a complete line of gyros products, 11 variety of pita bread, and specialty items such as spanakopita, traditional Greek desserts and imported products. www.kronosproducts.com
About Prospect Partners, LLC
Prospect Partners, LLC of Chicago, Illinois is a leading investor in unique lower-middle-market companies, managing two private equity funds totaling $270 million. Since its inception in 1998, Prospect Partners has focused on management-led leveraged acquisitions of small niche leaders and has invested in approximately 50 companies within many niche consumer, commercial, specialty distribution and service markets throughout the United States.