San Francisco – Gryphon Investors, a San Francisco-based private equity firm, is making a majority investment in B.C.-based The Original Cakerie. The Original Cakerie is a manufacturer of frozen desserts for retail and foodservice customers across North America. Terms of the recapitalization were not disclosed, but the deal is expected to close in early December.
The Original Cakerie, founded in 1979 and privately held, is headquartered in Delta, B.C., with a second production facility in London, Ont. The company serves over 300 customers in the U.S. and Canada. President and CEO Dave Hood will continue to lead the company following the acquisition.
“Consumers value affordable indulgence across economic cycles, and they are increasingly searching for quality products and clean-label ingredients when they choose to indulge,” said Keith Stimson, partner and head of Gryphon’s Consumer Group, in a news release. “We have had a proactive focus on establishing a platform in the high-quality premium baked goods space, in order to benefit from these consumer trends, as the in-store bakery sections of supermarkets as well as foodservice customers continue to look for high-quality dessert offerings.”
Among Gryphon’s previous investments in the food industry are Flagstone Foods, Trusthouse Services Group, and Eight O’Clock Coffee.
Matt Farron, a principal in Gryphon’s Consumer Group, stated in the news release: “The Original Cakerie is poised for ongoing rapid growth as it continues to bring innovative, delicious dessert products to its retail and foodservice partners. We look forward to working with Dave and his team to continue to drive The Original Cakerie’s growth both organically as well as through strategic add-on acquisitions.”
Hood commented in the release that “we are very excited to partner with Gryphon, given their proven track record in the food sector and the significant resources they bring to the table to assist us in building the company and accelerating our growth. Gryphon’s investment will provide our customers and employees with the opportunity to be associated with an exciting growth platform and enduring leader in the premium baked goods space. We welcome Gryphon’s partnership as we enter our next stage of growth.”
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