Bain Capital Private Equity has entered into a definitive agreement to acquire Dessert Holdings, a North American premium dessert company. Dessert Holdings will continue to operate under its current management team, led by chief executive officer Paul Lapadat. Financial terms of the private purchase from current owner Gryphon Investors were not disclosed. Dessert Holdings is the platform for three premium brands: The Original Cakerie, Lawler’s Desserts and Atlanta Cheesecake Company.
“We are focused on building the leading premium dessert company in North America by bringing innovative, chef inspired dessert products to our retail and foodservice customers,” said Lapadat. “Bain Capital Private Equity’s investment and business-building expertise is coming at just the right time in our evolution, and they share our vision and ambition to accelerate our growth as the innovation leader in premium, artisanal desserts. We want to thank Gryphon Investors for its support over the last five years and look forward to partnering with our new owners to expand our organization and support the next stage of growth.”
“Paul and his team have done an exceptional job in building Dessert Holdings as the leading premium desserts platform in a category that continues to grow as consumers increasingly choose to treat themselves to desserts with high quality, clean label ingredients,” said Adam Nebesar, a managing director at Bain Capital Private Equity. “We are thrilled to partner with this experienced team and look forward to supporting Dessert Holdings as it develops new and innovative products, pursues organic growth and acquisition opportunities, and further strengthens its value proposition to existing and new
Keith Stimson and Matt Farron, both partners at Gryphon, added, “Gryphon is delighted to transition our investment in Dessert Holdings to a partner that will help them attain next-level growth. Over our five years of ownership in the company, we have supported two addon acquisitions, overseen a sizeable plant expansion, and solidified the management and operations team into a highly professional organization. We are proud to leave Dessert Holdings well-positioned to thrive in a burgeoning market sector with strong growth trends, and we wish Paul and the entire team continued success.”
Debt financing for the transaction is being led by Antares Capital. Houlihan Lokey is serving as financial advisor to Dessert Holdings. PwC is serving as accounting advisor, and Ropes & Gray LLP is serving as legal counsel to Bain Capital Private Equity.