SAN FRANCISCO — Gryphon Investors is making a majority investment in The Original Cakerie, which manufactures frozen desserts for retail and food service customers in North America. Terms of the recapitalization were not disclosed. The deal is expected to close in early December. Dave Hood will remain as president and chief executive officer of The Orginal Cakerie.
The Original Cakerie, which was founded in 1979, has a production facility at its headquarters in Delta, B.C., and another production facility in London, Ont. The company serves more than 300 customers. Products include single-layer, two-layer and three-layer cakes, dessert bars, and brownies. This year The Original Cakerie received a 2015 Food and Beverage (FABI) Award from the National Restaurant Association for its Inspired by Happiness gluten-free, two-layer Dreamin’ cakes.
|Keith Stimson, partner and head of the Consumer Group for Gryphon Investors|
“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 the Consumer Group for San Francisco-based Gryphon Investors, a private equity firm. “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 food service customers continue to look for high-quality dessert offerings.”
Gryphon previously invested in such food companies as Flagstone Foods, TrustHouse Services Group and Eight O’Clock Coffee.“Gryphon has a long-standing track record of success investing in the food and beverage space, and assisting founder-owned businesses like The Original Cakerie in further developing their category leadership,” said Dennis O’Brien, partner head of the Operations Resources Group for Gryphon Investors. “The Original Cakerie is a uniquely attractive platform for expansion in the North American baked goods sector, and we believe Gryphon’s Operations Resources Group and executive advisers will provide management with highly relevant and practical resources as they continue to build the company.”