Jeff’s Gourmet Pies, Inc. has been sold by Heritage Equity Partners (“HEP”), a Maryland-based mergers and acquisitions firm. HEP conducted an auction among multiple qualified bidders in May and after several rounds of competitive bidding, the business was sold to Fairfield Gourmet Food Corp, DBA David’s Cookies, a New Jersey based gourmet dessert company. The sale hearing to approve David’s Cookies as the successful bidder was yesterday morning and closing is scheduled for later this month. Jennis & Bowen served as counsel for the Debtor and Goodrich, Postnikoff & Associates provided counsel for the secured creditor.
Jeff’s Gourmet Pies was founded in 1982 and has been a long time supplier of desserts for well-known, national restaurant chains, as well as several national foodservice companies, including SYSCO and US Foods. The company filed Chapter 11 protection in early April in order to restructure the debt and recapitalize the business with a new owner. Matt LoCascio, Managing Director at Heritage Equity Partners said, “This is a great outcome for Jeff’s Gourmet Pies, as well as the dedicated customer base that supported the business throughout this process. David’s Cookies brings many synergies, as well as new opportunities for the business and perhaps most importantly, keeps over 60 jobs intact at the Tampa facility.”
David’s Cookies was the creation of New York Chef, David Liederman in 1979. Having successfully grown the company to over 250 locations throughout the world by the mid 1980’s, rising operating costs led to a buyout by Fairfield Gourmet Foods Corp - who rejuvenated the David’s brand by introducing these high quality cookies and frozen cookie dough into the food service and co-branding industries. Today, David’s Cookies is a leading manufacturer and distributor of high quality desserts having recently opened a new 160,000 sq. ft. state of the art facility in Cedar Grove, NJ where they employ over 350 people. Ari Magulies, President and CEO Fairfield Gourmet Foods, the parent company of David’s Cookies and other food brands, commented, “We are thrilled with the acquisition of Jeff’s Gourmet Pies. We are always on the lookout for ways to expand our bakery, pastry, and dessert items and Jeff’s quality products are a perfect fit for our company’s long term goals. We believe both brands can continue to be successful and expand on shared strengths including access to the multiple facilities and intellectual capital of both companies.” Under Mr. Margulies leadership, David’s Cookies has grown substantially since 1990 with annual sales in excess of $100 million.
Joe Penshorn, CEO of Jeff’s Gourmet Pies, said “I feel very confident we found the right buyer for Jeff’s Gourmet Pies. David’s Cookies is going to add many new options for our customers and I am excited we were able to maintain the business and keep our employees in place. Jeff’s is now in a position to be stronger than ever and continue to provide high quality desserts for our customers.”
Heritage Equity Partners, based in Easton, Maryland, provides investment banking and advisory services for companies in a wide range of industries and has completed in excess of 400 engagements throughout the United States since 1988.
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