Babson Capital Management was the agent on a senior secured credit facility to support Gryphon Investors’ majority investment in The Original Cakerie.
The Original Cakerie is a manufacturer of frozen desserts sold into the North American retail and foodservice sectors. Products include three layer cakes; two layer cakes; single layer cakes; dessert bars; and brownies. The company was founded in 1979 by Doug McFetridge and Kent Norris and is headquartered in Delta, BC with an additional manufacturing facility in London, ON (www.cakerie.com).
Babson was the sole lead arranger and administrative agent on the transaction which included a revolving credit facility and a term loan facility. Babson led a syndication of the senior credit facility which was nearly two times oversubscribed.
“The Babson team again earned its reputation for being a reliable financing partner with the capacity to provide surety to close even on a strict timetable,” said Matt Farron, a principal at Gryphon Investors. “Gryphon appreciates Babson’s partnership on the investment in The Original Cakerie and we look forward to working with Babson again soon.”
Babson Capital has $223 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA; New York, Chicago, Charlotte and Los Angeles, and nine other offices in Europe, Asia and Australia (www.BabsonCapital.com).
“Babson is excited about the opportunity to partner with Gryphon on this Canadian platform,” said Brian Baldwin, Managing Director in Babson’s North American Private Finance Group. “We believe Gryphon’s food industry expertise will prove valuable in helping The Original Cakerie grow its business organically and through acquisition, and we look forward to supporting the company in this growth strategy.”
Gryphon Investors makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $150 million of capital in companies with sales ranging from $50 million to $500 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. Gryphon is based in San Francisco (www.gryphoninvestors.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-21-15
