Indulge Desserts Holdings LLC, a portfolio company of AUA Private Equity Partners LLC, has acquired dessert maker Love & Quiches (L&Q) for an undisclosed amount. The deal adds new distribution channels for Indulge Desserts’ existing customer base.

L&Q is a family-established business founded in 1976 that manufactures gourmet desserts and quiches. The target, based in Freeport, New York, distributes its products through traditional and alternative channels, including: national restaurant chains, food service distributors, grocery stores, cruise ships, airlines, and also the military. L&Q’s dessert portfolio consists of brownies, carrot cake, New York cheesecake, chocolate cake and red velvet cake.

Indulge Desserts also makes gourmet desserts. The Lafayette, Louisiana-based target offers a variety of American and ethnic food products, including: cakes, cheesecakes, mini desserts, mousses and international-inspired desserts that are Kosher, gluten-free and sugar-free. Indulge Desserts also makes cappuccinos, lattes, iced coffees, hot chocolates, and a variety of teas and milkshakes.

“We continue to seek other dessert manufacturing assets as we realize on our vision to grow Indulge Desserts into a leading premium dessert manufacturer," states Steven Flyer, a partner at AUA Equity that worked on the deal.

Formed in 2012, AUA Equity is a lower middle-market private equity firm with more than $275 million in assets under management. The New York-based PE firm makes equity investments of up to $75 million in family-owned businesses and companies benefiting from the growth of the U.S. Hispanic population. In early 2016, the PE firm acquired yogurt maker Noga Dairies Inc. as an add-on to portfolio company Raymundos Food Group, LLC. AUA Equity’s business development and investor relations head, Astrid Soto, helped steer the Noga Dairies deal and was recently honored as one of Mergers & Acquisitions’ 2016 Most Influential Women in Middle-Market M&A.

Food deals continue to drive M&A across the middle market. Recent acquisitions for businesses involving desserts include: Geneva Glen Capital’s closed deal for Dianne’s Fine Desserts Inc., a maker of frozen desserts to the food service industry, from Superior Capital Partners; and Dean Foods Co.’s (NYSE: DF) deal to acquire Friendly’s Ice Cream LLC’s retail ice cream business for $155 million. McDermott Will & Emery served as legal adviser to the buyers on the L&Q deal, while CohnReznick served as financial adviser.

Food and beverage industry