Bain Capital is exploring strategic options for Dessert Holdings, according to people familiar with the matter, weighing either a sale or an initial public offering that could value the maker of cakes, pies and cookies at in excess of $3 billion. The private equity firm has retained Goldman Sachs and Bank of America to manage a so-called dual-track process, the sources said, speaking on condition of anonymity because deliberations remain private.
Sources described Dessert Holdings as a St. Paul, Minnesota-based supplier that serves grocery chains, restaurants and other foodservice customers across North America. The company traces its corporate lineage to an enterprise started in 2016 by Gryphon Investors. Bain Capital acquired the business in 2021, at which time it operated three brands; it has since grown to encompass seven brands.
According to the sources, Dessert Holdings now generates roughly $1 billion in annual revenue and more than $200 million in earnings before interest, taxes, depreciation and amortization (EBITDA). The portfolio of brands identified by the sources 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.
Representatives for Bain Capital, Dessert Holdings, Goldman Sachs and Bank of America declined to comment, the sources said. The engagement of investment banks to run both sale and IPO options is consistent with a dual-track approach that allows owners to solicit private bids while simultaneously preparing for a public listing.
Details provided by the sources are limited to the valuation range, the identities of the advisory banks and the company’s reported financial metrics and brand roster. The confidentiality of the process and the lack of public statements from the parties involved mean there is no public timetable or guarantee that either a sale or an IPO will be completed.
Contextual notes - The information available is based on accounts from individuals familiar with the situation and reflects the current, non-public status of the deliberations. Beyond the named brands and the approximate financial figures cited, further operational or strategic specifics have not been disclosed by the parties.