Houlihan Lokey Advises Ellison Bakery

Transaction: Ellison - Tilia - QualiTech - MidOcean

Houlihan Lokey is pleased to announce that Ellison Bakery, LLC (Ellison), a portfolio company of Tilia Holdings, LLC (Tilia), has partnered with QualiTech, LLC (QualiTech), a portfolio company of MidOcean Partners (MidOcean).

Headquartered in Fort Wayne, Indiana, Ellison is a leading developer and manufacturer of customized baked ingredient solutions that provide the defining characteristics in a wide variety of customers’ finished applications. The company’s bits, crunches, fines, squares, and components are used in products across the active nutrition, frozen novelty, snacking, yogurt/dairy, and beverage end markets. Ellison’s custom formulations are designed to perform in their specific end applications while maintaining great taste, structure, texture, and mouthfeel. With its robust R&D and innovation capabilities, Ellison is able to respond to changing consumer preferences and market trends, offering a wide range of product formats.

Tilia is a Chicago-based private investment firm specializing in control investments in manufacturing and services businesses in the food chain. The firm’s sector-focus strategy is a successful approach to investments that spans three decades. Tilia’s deep understanding of operations, its subject-matter expertise in the food chain, and its disciplined approach to value creation uniquely position the firm to scale business services companies in the lower middle market. Through a value creation and governance model emphasizing stewardship, Tilia builds distinctive growth companies that enhance safety, nutrition, and sustainability in the food supply chain.

Headquartered in Chaska, Minnesota, QualiTech is a leading global manufacturer of value-added ingredient solutions with product applications that fulfill complex taste, appearance, texture, and functional attribute requirements. In addition to food applications, QualiTech delivers best-in-class ingredients and nutrients that support the health and well-being of animals and specialty crop end markets. QualiTech owns and operates two manufacturing facilities and three land parcels in Chaska, with one co-manufacturing partner located in California.

MidOcean is a New York-based alternative asset manager specializing in middle-market private equity, structured capital, and alternative credit investments. Since its inception in 2003, MidOcean has targeted investments in middle-market companies in the consumer and business services sectors. MidOcean Credit Partners was launched in 2009 and currently manages a series of alternative credit strategies, collateralized loan obligations (CLOs), and customized separately managed accounts.

Houlihan Lokey served as the lead financial advisor to Ellison and assisted in structuring and negotiating the transaction on its behalf. This deal represents another successful transaction for Houlihan Lokey in the specialty ingredients space.

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