Gryphon Investors, a middle-market private equity firm, is acquiring a majority stake in frozen dessert producer the Original Cakerie.
The target founded in 1979 and based in Delta, British Columbia, makes frozen cakes for 300 customers in North America that include restaurants and retailers. Original Cakerie also has a production facility in London, Ontario.
“Consumers value affordable indulgence across economic cycles and they are increasingly searching for quality products and clean-label ingredients when they choose to indulge,” says Gryphon Partner Keith Stimson.
Both strategic buyers and PE firms have been showing interest in food and beverage companies. Constellation Brands (NYSE: STZ) is purchasing craft beer brewer Ballast Point Brewing & Spirits; Glanbia plc (LON: GLB) is adding protein bar maker ThinkThin; and Peak Rock Capital has acquired packaged food distributor Berner Food & Beverage.
BMO Capital Markets, Kirkland & Elllis LLP, and Stikeman Elliott LLP are Gryphon advisers. Houlihan Lokey Inc. (NYSE: HLI) K&L Gates LLP and McCarthy Tetrault LLP are advising the target.