Gryphon Investors, a San Francisco-based private equity firm, and The Original Cakerie announced that Gryphon is making a majority investment in the company, a leading manufacturer of high-quality frozen desserts for retail and foodservice customers across North America.  Terms of the recapitalization were not disclosed.  The deal is expected to close in early December.

The Original Cakerie, founded in 1979 and privately held, is based in Delta, British Columbia, Canada, with a second production facility in London, Ontario.  The company serves over 300 customers in the United States 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.  “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,  added, “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.”

BMO Capital Markets acted as exclusive financial advisor to Gryphon and Houlihan Lokey acted as exclusive financial advisor to The Original Cakerie on the transaction.  Kirkland & Ellis LLP and Stikeman Elliott LLP acted as legal advisors to Gryphon and McCarthy Tétrault LLP and K&L Gates LLP acted as legal advisors to The Original Cakerie.