Integrated Bakery Resources
Attracting the attention of a vast, but suitable, acquirer by running a process
Norm Duffett advised the sale of Lake Oswego, OR Integrated Bakery Resources (IBR) to Cargill, Inc. Integrated Bakery Resources (IBR) is a provider of pre-mix systems, finished foods and related marketing services to North American-based bakers and retailers. Cargill, with global operations, is one of the largest private companies in the world.
IBR had tried to sell before, without success. They needed appropriate packaging in a vivid Information Memorandum that properly told their unique story.
Norm Duffett ran a process for IBR. With a well-crafted Information Memorandum that positioned IBR as the innovator they were, he rigorously selected a roster of qualified potential acquirers. He ran a blind auction. Industry giant Cargill had the interest and the means, and Norm negotiated a successful sale.
Strategic Synergies: a “win win”
Founders and owners Doug Burke and Patrick Shannahan wanted an exit plan. They had grown the business for 15 years, and were proud of the “..hands-on leadership, innovative marketing, product development and other services that have been hallmarks..” of IBR. By the time of the sale, IBR had grown to 100 employees and had big customers – Costco, Walmart, Sam’s Club, and regional bakers - and there were additional opportunities for serving them. With more resources, that goal was possible.
Cargill perceived a team possessing leadership, tremendous Intellectual Property, and a proven track record of customer success in the baking category. IBR was a fit, in their view, “help(ing) our customers effectively address a range of issues, including product innovation and formulation, time to market, and product branding and packaging.”