Superior Capital Partners has acquired the assets of Daystar Desserts as an add-on acquisition to its portfolio company, Dianne’s Fine Desserts. With the acquisition of Daystar, Dianne’s now serves customers in the three industry channels – foodservice, restaurant and retail.
Daystar Desserts develops and bakes branded and private label cheesecakes, bar cakes, mason jar cakes and individual desserts for retail, grocery and in-store bakery channel customers. The company is based north of Richmond in Ashland, VA (www.daystardesserts.com). Dianne’s acquired Daystar from John Fernandez, a bakery industry executive who will now lead Dianne’s retail initiatives.
Dianne’s provides gourmet frozen thaw-and-serve desserts for the foodservice industry and national restaurant chains. Superior acquired the gourmet desserts division of Heinz North America in May 2012 and renamed the company Dianne’s Fine Desserts. The company has approximately 500 employees and is headquartered at its bakery in Newburyport, MA with a second bakery operation in Le Center, MN (www.diannesfinedesserts.com) (www.worldsbestcheesecake.com).
“This is a very exciting acquisition for Dianne’s. Daystar’s strong presence in the retail channel complements Dianne’s leading position in the foodservice and restaurant channels,” said Dianne’s Chief Executive Officer Mike Knowles. “Daystar has proven itself through innovative product development and packaging concepts along with excellent customer service. Daystar’s bakery in Richmond also expands our geographic footprint from the Northeast and Midwest to the Southeast.”
“The Daystar acquisition fulfills the strategic goal of having a growing presence in all three potential industry channels. The achievements of Dianne’s represent Superior’s core investment thesis as a special situations fund,” said Mark Carroll, Superior’s Managing Partner. “Since acquiring Dianne’s from Heinz in 2012, we have executed a complex corporate carve-out, brought in a new leadership team, returned 100% of invested capital and created a $100 million platform business. We are proud to be partners with the Dianne’s management team and are extremely excited about the future.”
Superior Capital Partners invests in niche manufacturers, value-added distributors and specialty service companies with annual revenues between $10 million and $150 million. Superior will invest up to $15 million of equity per transaction in management buyouts, corporate spin-offs, recapitalizations, family successions, acquisitions out of bankruptcy and debt purchases. The firm is based in Detroit (www.superiorfund.com).
This transaction, which closed on New Year’s Eve, represents the nineteenth acquisition from Superior’s 2008 inaugural fund.
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-9-15