Gryphon Building Dessert Empire

Gryphon Investors has agreed to acquire family-owned Lawler Foods, a maker of desserts sold through the retail and foodservice channels.

Lawler Foods produces and sells gourmet cheesecakes, cakes, and pies. Its products are used in restaurant chains, hotels, wholesale clubs, retail outlets, and other foodservice establishments in the United States, Canada, Mexico, and Europe. The company was founded in 1976 by William and Carol Lawler and is headquartered north of Houston in Humble, TX (www.lawlers.com).

In December 2015, Gryphon acquired The Original Cakerie, 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 near Vancouver in Delta, BC with an additional manufacturing facility in London, ON (www.cakerie.com).

The operations of Lawler Foods will be coordinated with The Original Cakerie but the two companies will be separate portfolio companies of Gryphon’s fourth fund, Gryphon Partners IV, LP. The Lawler family will retain an investment in Lawler Foods and the management team will remain in place under Gryphon ownership.  Wes Stasny, Lawler’s vice president of sales, will be promoted to president as part of the transition.

“This acquisition represents an outstanding strategic fit for Gryphon’s premium dessert platform.  Lawler Foods’ long-term focus on producing best-in-class quality products is consistent with The Original Cakerie’s own commitment to quality,” said Keith Stimson, a Partner at Gryphon. “With little overlap in product offerings and customers between the two businesses, we are confident that the two companies will help expand our customer relationships with leading North American retailers and foodservice accounts.”

Gryphon makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $100 million of capital in companies with sales ranging from $50 million to $400 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).

“Lawler Foods is a perfect complement to The Original Cakerie on many levels, expanding both product offerings and the geographic footprint,” said Matt Farron, a Principal at Gryphon.

Lawler Food’s financial advisor on this transaction was Lazard Middle Market (www.lazardmm.com).

© 2016 Private Equity Professional • 7-19-16