Bundt Cake King Sold to Roark

Levine Leichtman Capital Partners (LLCP) has sold Nothing Bundt Cakes (NBC) to Roark Capital.

NBC is a franchisor and operator of more than 390 specialty bakeries and stores in 40 U.S. states and in Canada that prepare and sell specialty Bundt cakes and other retail gift items. The company’s products – available in many flavors including chocolate chip, vanilla, red velvet, carrot, lemon, and pecan praline – are baked daily on-site with ingredients distributed by NBC from its in-house facilities.

NBC was founded in 1997 in Las Vegas by Dena Tripp and Debbie Shwetz and today is led by CEO Kyle Smith with headquarters north of Dallas in Addison, Texas. LLCP acquired NBC in October 2016 and at that time it had 175 U.S. stores.

“Today marks an important milestone for the company, and we would like to thank LLCP for their close relationship with our team and for their valuable contributions and strategic insight over the years,” said Mr. Smith. “LLCP’s deep expertise in franchising combined with their management-centric approach made for the perfect partner in scaling our business and further developing our one-of-a-kind brand.”

“Kyle Smith and the entire Nothing Bundt Cakes team have built a truly unique business that is positioned for continued growth, with an incredible culture built around great people,” said Matthew Frankel, a managing partner at LLCP. “The Nothing Bundt Cakes investment has been very successful for LLCP, with exceptional same-store sales growth and robust franchise development. This was driven by the efforts of the company’s management team along with value creation initiatives, including technological enhancements, menu innovation, supply chain improvements, and the introduction of corporate stores through both strategic M&A and de novo openings.”

LLCP invests in middle-market companies located in the United States and Europe. Sectors of interest include consumer and branded products, franchises, business services, healthcare, education, engineered products and light manufacturing. LLCP has $8.2 billion of assets under management and is investing from its sixth fund, Levine Leichtman Capital Partners VI LP, which closed in 2018 with $2.5 billion of committed capital. The firm has offices in Beverly Hills, New York, Chicago, Charlotte, Miami, London, Stockholm, and The Hague.

“Nothing Bundt Cakes is a special brand with delicious products that are beloved by guests. We have great admiration for what Kyle and his team have accomplished and are excited to partner with them,” said Clay Harmon, a managing director at Roark.

Atlanta-headquartered Roark Capital invests in companies that have revenues from $20 million to $5 billion and EBITDA from $10 million to $500 million. Sectors of interest include franchised and multi-unit business models in the retail, restaurant, and service sectors; consumer products and services; and business services. In November 2018, Roark completed fundraising for its two newest funds, Roark Capital Partners V LP and Roark Capital Partners II Sidecar LP, with a total of $6.5 billion of capital commitments. The buy of NBC is Roark’s 29th restaurant investment and its 92nd franchise/multi-location brand.

San Francisco-based North Point Advisors was the lead financial advisor to NBC with support from Baird.

© 2021 Private Equity Professional | May 18, 2021

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