Superior Cake Products Inc / Hostess Brands LLC
New England Capital Partners (NECP) has sold Superior Cake Products, Inc. (Superior) to Hostess Brands, LLC. Financial details have not been disclosed.
Founded in 1908, Superior markets its products on a branded and private label basis in the high visibility, high margin in-store bakery departments of regional and national grocery chains, club stores and superstores. Superior has established itself as the preferred supplier in the growing in-store bakery category through its institutional baking mastery, focused product strategy, commitment to quality and successful marketing of its brand.
Founded in 1919, Hostess Brands is a preeminent manufacturer of branded snacks owned by Apollo Global Management and Metropoulos & Co. The company has a portfolio of iconic sweet baked goods brands including Twinkies, Ding Dongs, Zingers, Donettes and Ho Hos. “Superior on Main is an in-store bakery company that makes wonderful éclairs, brownie bites, magdalenes, black and white cookies, very high-quality products that sell into club and grocery and other in-store bakery outlets,” said William D. Toler, Chief Executive Officer of Hostess Brands. “We’re going to use that as part of our strategy to move into that part of the store.”
NECP is a private investment firm focused on acquiring lower middle-market operating companies.
TM Capital Corp., one of M&A International Inc.’s US members, served as financial advisor to the seller in this transaction. TM Capital assisted Superior and NECP in attracting a strategic partner that shares management’s vision and offers the resources necessary to capitalize on the company’s numerous growth opportunities.
“In completing this transaction, we wanted to ensure that the growth and success of the business that we have built to date is the foundation for further expansion in the years to come. We are delighted with the outcome and we would like to thank the team at finnCap Cavendish for all of their help throughout this process. They are experts at advising founders and entrepreneurs and they provided us with invaluable advice and guidance throughout.”
“We are delighted to be partnering with Rockpool. This transaction will enable us to accelerate our long-term growth objectives and help expand our international presence, especially in the US. Karri and Amy achieved a fantastic result for us and their ecommerce sector expertise, professionalism and unwavering dedication throughout the process were instrumental in achieving a successful completion.”
“We are immensely grateful for the hard work and expertise we received from finnCap in securing this fundraise. Zuleika’s knowledge and communication skills were outstanding. It is the first time we have raised external funds so we were heavily reliant on their introductions, all of which were a good fit for Ro&Zo. Zuleika’s guidance through the process was exemplary. We are delighted to have chosen Pembroke as our new shareholders and look forward to a long relationship with them as we continue our growth strategy.”
“On behalf of all of the shareholders at Peach, a huge thank you to the team at finnCap Cavendish – they have done a great job. With the unprecedented macro back-drop that we have all been experiencing, we needed an adviser who was thoughtful, tenacious and prepared to go the extra mile. We got of all this in spades from the finnCap Cavendish team and it has been a pleasure to work with them. We would not hesitate to recommend them to other business founders and entrepreneurs who are in need of experience-led judgement and advice.”
“I would also like to thank the team at finnCap Cavendish. They have done a great job in finding us the right buyer and running a smart and efficient process. Their support throughout has been excellent and combined with their commercial approach and sector knowledge, they have made great advisers for us.”
“Joe Stelzer and his team at finnCap Cavendish were the perfect partners as we navigated this exciting next step for the group. The firm’s wealth of expertise in advising entrepreneurial growth businesses, partnered with their quality of service and professionalism was invaluable and helped make this deal function as smoothly as possible.”
“This transaction is huge for our business as we look to continue our growth journey. We’re very excited to have raised enough capital from a leading impact investor to expand our market-leading position and maintain standards of excellence across all our products. We’re hugely grateful to the team at finnCap, who played a fundamental role, in what we hope, will be a very exciting growth story.”
“I would like to thank all of those involved in the process that has concluded with us ultimately choosing Neighborly as our partner going forward, those at finnCap Cavendish and our CFO Mike Bergin, without whom this would have not happened.”
Thank you to the Cavendish team for your unwavering support throughout this process. Finding a strategic overseas partner to allow me to realise my global ambition was my number one aim, and this has been achieved. In the current market the result you have delivered is exceptional.
It was a great pleasure to work with the Cavendish team again having originally worked with them when we sold Naked Wines to Majestic Wine in 2015. John, Rebecca and the team rigorously assessed the market to find the right new owner for a business with dedicated staff and suppliers and the right deal to achieve Naked’s goal of realising capital and simplifying the business.
Recent Deals for Consumer & Retail Sector
Epiris Fund III
William Morris London
Revolution Bars Group plc
The Restaurant Group plc plc