Snow Phipps Group has acquired DecoPac, a direct-to-store distributor of decorative baking products used by bakeries, professional cake decorators and baking enthusiasts across the US, Europe and Canada.
DecoPac is a supplier of branded and licensed cake and cupcake decorating products. The company holds licenses to use some of the world’s most recognizable entertainment brands and professional sports leagues which includes popular characters and properties from Disney, Nickelodeon, Mattel, DreamWorks, Marvel Comics, LucasFilm, Warner Bros., Star Trek, Peanuts and professional sports such as from the NHL, NBA, NFL, and MLB.
DecoPac’s products include cake decorating kits, cake decorations, print-on-demand cake decorating systems, pre-cut fondant shapes, pre-rolled fondant sheets, edible cake decorations, food colorings and candles (fondants are edible icings used to decorate or sculpt cakes and pastries).
DecoPac also uses proprietary internet-based technology to enable the ordering of customized baked goods with short turnaround times through in-store kiosks and online ordering software. This includes a proprietary, print-on-demand service called PhotoCake which allows bakeries to print edible customized images onto baked goods. The company was formed in 1982 as an internal supplier of cake decorations to McGlynn’s Bakery stores, a family-owned bakery founded in 1919. DecoPac is headquartered near Minneapolis in Anoka, MN and has an additional facility in the UK (www.decopac.com) (www.cake.com).
As part of the Snow Phipps transaction, Michael McGlynn, DecoPac’s current CEO, has been named non-executive Co-Chairman of the Board and DecoPac’s current President, John 
Anderson, has been promoted to CEO. “The McGlynn family has been in the bakery business for nearly 100 years starting from our origins as a retail bakery in Minneapolis. The decision to partner with a private equity firm is one that our family members took very seriously,” said Mr. McGlynn. “We are confident that Snow Phipps is the right partner for us given their consumer investing experience and its many resources available to bolster DecoPac’s continued growth. We look forward to a successful partnership with Snow Phipps and I and several of my family members are excited to remain significant shareholders in the business.”
Snow Phipps makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging from $40 million to $100 million. The firm has $1.5 billion of assets under management and was co-founded by Ian Snow and Ogden Phipps in April 2005. Snow Phipps is headquartered in New York (www.snowphipps.com).
“DecoPac represents an opportunity for Snow Phipps to partner with a long-tenured management team that has demonstrated the ability to serve as a market-leading, value-added distributor of bakery-decorating solutions with a unique, technology-focused business model,” said Sundip Murthy, Partner at Snow Phipps. “As retailers continue to invest in their in-store bakery footprints, there is strong demand for top-tier supply chain quality and service. DecoPac is distinctly positioned to help its customers drive profitable growth.”
Snow Phipps Operating Partner Peter Shea will serve as the non-executive Co-Chairman of the Board. “DecoPac represents an opportunity for Snow Phipps to participate in the rapid growth surrounding the in-store bakery,” said Mr. Shea. “The McGlynn family has done an outstanding job providing best-in-class supply chain service and solutions for bakery operators. We are excited to participate in the next phase of the company’s development.”
© 2017 Private Equity Professional | October 4, 2017
