Levine Leichtman Capital Partners (LLCP) has acquired sister companies Kilwin’s Quality Confections and Kilwins Chocolates Franchise (together Kilwins).
Kilwins is a franchisor, retailer, manufacturer and distributor of chocolate, ice cream and confectionary products. The company makes over 75 different products including boxed chocolates, cakes, truffles, caramel apples, caramel corn, toffee, salt water taffy, fudge, and marshmallows. The company currently operates over 150 stores across 25 states, the majority of which are franchised operations.
Kilwins, headquartered in Petoskey, Michigan, was founded in 1947 and has been majority owned by Robin and Don McCarty since 1995. The McCarty’s will maintain an equity ownership in the business in partnership with LLCP.
“It has been a joy for Robin and I to have been a part of this company for the last 43 years,” said Mr. McCarty. “Our caring, loyal franchisees are the basis of our long-term success, and the Kilwins team has made incredible products, built an exceptional platform and has successfully created meaningful and lasting experiences for our customers. As we look to the company’s future, we are confident that LLCP has the resources and franchise experience to lead Kilwins in its next phase of growth, and will provide dynamic, thoughtful, and strong customer focus and leadership.”
“Kilwins has an incredible brand proposition, a compelling product portfolio, and a loyal customer base,” said Andrew Schwartz, a partner at LLCP. “We are strong believers in the long-term potential of Kilwins and are excited to work closely with the company’s management team to accelerate growth through continued franchise expansion, new channel opportunities, and additional product innovation.”
Levine Leichtman invests in US and Europe-based middle-market companies across numerous industries including franchising, business services, education, engineered products, healthcare, and light manufacturing. The firm closed its most recent fund, LLCP Lower Middle Market Fund III LP (Fund III), at an oversubscribed $1.38 billion in September 2021. LLCP’s investment in Kilwins is the third platform investment for Fund III.
LLCP is an active investor in the franchising and multi-unit store sector, having invested in more than 25 brands including Tropical Smoothie Cafe, Nothing Bundt Cakes, Mountain Mike’s Pizza, Wetzel’s Pretzels, and Global Franchise Group.
Since its founding in 1984 by Arthur Levine and Lauren Leichtman, LLCP has managed $13.2 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. LLCP currently has $8.6 billion of assets under management with offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague and Frankfurt.
BDO Capital Advisors was the financial advisor to Kilwins, and Varnum, a Grand Rapids, Michigan-headquartered law firm, provided legal services.
© 2023 Private Equity Professional | February 28, 2023
Imperative Chemical, a portfolio company of Hastings Equity Partners, has agreed to merge with RSI Chemicals, a portfolio company of One Equity Partners (OEP). Hastings will be the majority owner of the combined business.
“We are extremely proud of our partnership with management over the years and we are excited about this next phase of growth,” said Joe Conlon, a managing director at Hastings. “The combined company will more effectively serve existing customers and its ability to compete with the largest players in the sector will be enhanced.”
Houston-based 
Three months ago, it seemed that all the ingredients were in place for middle market valuations to retreat from record levels. These ingredients included increased macro-economic uncertainty, a pullback in cash flow-based debt, and increased borrowing charges.
“While it seems clear many sellers and buyers were tapping the brakes in the second half of 2022, the extent of the year-over-year volume drop was magnified by the land-rush conditions in the prior year,” said Bob Dunn, GF Data’s managing director.
West Lane Capital Partners and Wheel Capital Partners have acquired a majority interest in Epicurean Catering.
“We are thrilled to partner with West Lane and Wheel Capital as the company embarks on its next phase of growth,” said Mr. Friedman. “With their support, Epicurean is well-positioned to accelerate its expansion plans and continue to provide the highest level of service to its clients.”
Los Angeles-based 
Abacus Finance is continuing its active support of private equity buyouts with the close of new transactions for Thompson Street Capital Partners, American Pacific Group, Pine Tree Equity, and WestView Capital.
“American Pacific was great to work with on this transaction, and they brought us a standout company,” said Mr. Friedman. “Media 1 is a highly attractive, niche business offering a full suite of products and services.”
San Francisco-headquartered 
“We are excited to have had the opportunity to close our first transaction with the team from American Pacific,” said Mr. Clifford. “Securing this new relationship is a reflection of our ability to provide speed, cash-flow flexibility, and certainty of close – key aspects of what we call our Total Partnership Approach.”
Also closing in December was Thompson Street’s acquisition of 
St. Louis-based 
“What is important to Thompson Street – in addition to speed and certainty of close – is our flexibility in structuring transactions and the emphasis we place on exceptional client service – all part of our Total Partnership Approach,” said Mr. McKeever.
In January, WestView announced the closing of its fifth fund, WestView Capital Partners V LP, with $1 billion of oversubscribed and hard cap capital. Since its founding in 2004, Boston-based WestView has raised $2.7 billion in capital, invested in 54 companies, and closed 32 liquidity events that generated more than $2.2 billion in cash proceeds.
Flip Electronics, a portfolio company of O2 Investment Partners, has acquired Resurgent Semiconductor.
“This is a significant milestone in our history and growth plans,” said Bill Bradford, the president of Flip Electronics. “Component obsolescence is one of the major challenges facing manufacturers of legacy equipment. The addition of Resurgent’s extended manufacturing services vastly expands Flip’s offering of end-of-life solutions, allowing us to support customers well beyond their last-time buy dates.”
“Resurgent’s service offering is highly complementary to Flip’s business model,” said Joe Vallee, a partner at O2. “The partnership will significantly strengthen our value proposition to customers and authorized suppliers. Furthermore, our values and mission are closely aligned with those of the Resurgent team, so we couldn’t be happier to welcome them to Flip Electronics.”