A major dessert manufacturing company could soon hit the stock market or change hands in a massive deal worth over $3 billion, according to industry insiders.
Investment firm Bain Capital is weighing its options for Dessert Holdings, which produces cakes, pies and cookies for grocery stores and restaurants throughout North America. Three sources with knowledge of the situation say the company is exploring both a public stock offering and a potential sale.
To handle the process, Bain Capital has brought on major investment banks Goldman Sachs and Bank of America to explore both possibilities simultaneously, the sources revealed. They spoke on condition of anonymity due to the private nature of the discussions.
When contacted for comment, representatives from Bain Capital, Dessert Holdings, Goldman Sachs and Bank of America all declined to provide statements.
The dessert company has grown significantly since Bain Capital purchased it in 2021. At that time, the business operated just three brands after being founded in St. Paul, Minnesota by private equity firm Gryphon Investors in 2016.
Today, Dessert Holdings has expanded to encompass seven different dessert brands and generates approximately $1 billion in yearly revenue. The company also produces more than $200 million in annual earnings before accounting for interest, taxes, depreciation and amortization, according to the sources.
The portfolio of brands under Dessert Holdings includes Steven Charles, The Original Cakerie, Lawler’s Desserts, Atlanta Cheesecake Company, Dianne’s Fine Desserts, Kenny’s Great Pies and Willamette Valley Pie Company.
