By Gerelyn Terzo, Global AgInvesting Media
Private equity firm Arbor Investments, with dual headquarters in Palm Beach, Florida and Chicago, Illinois, is putting capital to work from its latest investment vehicle. Through Arbor Investments VI, the firm has acquired Furlani Foods, an Ontario, Canada-based producer specializing in all things garlic bread. The deal marks the third investment for Fund VI and further extends Arbor’s footprint in the specialty bakery segment, which has piqued the interest of investors.
Arbor, whose tag line is “we believe in the power of food,” has made the sector a steady part of its strategy, backing nearly two-dozen specialty baking businesses over time. Past investments span everything from waffles to large-scale commercial bakeries, including Golden Waffles in Fund V, Crown Bakeries in Fund IV, Rise Baking in Fund III, Gold Standard Baking in Fund II and Great Kitchens in Fund I. The Furlani acquisition expands upon that focus.
Furlani has built a North American footprint around specialty bread with facilities spanning Oak Creek, Wisconsin, North Liberty, Iowa, and Mississauga, Ontario, Canada. From those sites, the company produces a range of garlic-focused breads, from Texas toast and cheese bread to breadsticks and garlic knots. The products are sold under the Furlani and Cole’s brands, as well as through private-label programs with grocery retailers, giving the business broad reach across both branded and store-label channels.
Arbor Investments CEO and Co-Founder Greg Purcell stated, “From tortillas and croissants to waffles and pastries, I’ve always had a soft spot for baking businesses. Our philosophy is to invest in taste and value, and Furlani hits the mark on both. Add in our team’s deep expertise in baking, and I’m confident we can accelerate growth and win new customers and channels.”
Arbor President John Jordan also weighed in, saying, “Jonathan and the Furlani team have established themselves as leaders in the specialty garlic bread category by making significant investments in capacity and innovation over the years. The company’s next phase of expansion will require more of the same – continued investment in growth capex and compelling innovation to meet the needs of their customers. This aligns seamlessly with Arbor’s playbook, and we look forward to partnering on this next chapter together.”
The acquisition of Furlani Foods is being made through Arbor Investments VI, the same fund the firm closed last year after attracting over $1.2 billion in capital commitments alongside a parallel vehicle, Arbor Investments VI-A. The timing highlights how Arbor is now putting that capital to work, continuing a long-strategy of investing in food and beverage businesses.
At last check, Arbor Investments oversees roughly $3.1 billion in assets, according to recent filings, and has maintained a steady investment cadence across multiple fund cycles. Fund VI follows a $1.5 billion raise for its predecessor in 2020 and builds on a portfolio that includes companies such as Artisanal Brewing Ventures, Carnivore Meat Company and Oregon Freeze Dry.
At the time, Arbor’s Purcell commented, “We are humbled by the commitments from our longtime limited partners and welcome new investors who have entrusted Arbor with their capital. The closing of Arbor Fund VI during this unique fundraising environment is an endorsement of the incredible team we’ve built and the highly differentiated strategy we’ve refined over the last 26 years that we’ve been investing in the food industry.”
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