Highland Baking Company recently secured a substantial $32.5 million in New Market Tax Credits for a plant expansion in Spartanburg, South Carolina. This federally-backed project, designed to significantly boost production, is now poised to benefit its future owner, Europastry.

Here's the intriguing twist: Europastry has agreed to acquire Highland Baking, yet the transaction won't finalize for over two years. During this extended interim, Highland is undertaking this major plant expansion, a move that offers a unique strategic advantage.

Europastry appears to be masterfully positioning itself to absorb a dramatically expanded and modernized production capacity. This suggests a confident, aggressive push into the US market the moment the deal closes.

What We Know About the Europastry Highland Baking Deal

  • Europastry has agreed to acquire Highland Baking Co. as reported by Food Business News.
  • The deal is set to close in the second half of 2026, according to citybiz.
  • The Highland Baking Company plant expansion in Spartanburg, South Carolina, secured $18 million in New Markets Tax Credit (NMTC) allocation from National New Markets Fund, LLC, and a total of $32.5 million in New Market Tax Credits, including $31.8 million in Qualified Low-Income Community Investments (QLICIs), according to sds.
  • Highland Baking itself contributed an additional $4.5 million to finalize the project financing, according to sds. This substantial investment by Highland, despite its impending acquisition, suggests a clear commitment to delivering a state-of-the-art facility to Europastry, potentially under pre-negotiated terms.

Europastry's US Expansion Plans

Europastry's patient acquisition strategy, marked by the 2026 closing date and Highland's ongoing $32.5 million plant expansion, is a masterclass in strategic growth. It allows Europastry to inherit a de-risked, significantly larger US production footprint without the immediate capital expenditure or operational headaches. Highland Baking's substantial $4.5 million contribution to an expansion project it will soon cede ownership of speaks volumes. It strongly suggests a strategic imperative to deliver a fully operational, modernized facility, likely driven by market demands or pre-existing agreements with Europastry, despite the delayed acquisition. The Spartanburg facility will be humming with activity before Europastry even takes the reins, essentially handing Europastry a "free" plant expansion, according to sds.