May 15, 2012 – Superior Capital Partners announced today that it has acquired the gourmet desserts division of Heinz North America. The newly formed entity will be called Dianne’s Fine Desserts and will be led by Michael Knowles as CEO and Daniel Scales as President. This investment represents the twelfth acquisition and the fifth platform company from Superior’s 2008 first fund.
“We are extremely fortunate to be partnering with not one, but two, industry partners in this investment. Mike Knowles and Dan Scales have demonstrated track records of achieving bottom line success in many areas of the food industry and specifically in the frozen desserts category. The Dianne’s and Alden Merrell brands are known for extremely high quality and their products are served at some of the nation’s most highly regarded national chain restaurants. We are confident that with an increased focus on new product introductions and operational efficiencies, the Dianne’s platform will enjoy rapid growth in both revenue and profitability,” said Mark Carroll, Superior’s Managing Partner.
Dianne’s Fine Desserts is a provider of gourmet frozen thaw and serve desserts to the foodservice industry and in-store bakeries. The purchase includes the brands Dianne’s Fine Desserts and Alden Merrell Fine Desserts in addition to other brands including Black Tie and Skooopz. The company has approximately 500 employees and will be headquartered at its bakery in Newburyport, MA with a second bakery operation in Le Center, MN (www.diannesfinedesserts.com).
“Dianne’s Fine Desserts operates in an appealing sector of the food industry and the business offers significant growth potential. Our growth strategy will be focused on providing world class operational excellence, superior customer service and innovative products for our customers,” said Mike Knowles, CEO of Dianne’s Fine Desserts.
Superior Capital Partners invests in niche manufacturers, value-added distributors and specialty service companies with annual revenues between $10 million and $150 million. Superior will invest up to $15 million of equity per transaction to facilitate management buyouts, corporate spin-offs, recapitalizations, family successions, acquisitions out of bankruptcy and debt purchases. The firm is based in Detroit, MI (www.superiorfund.com).
“New ownership, dedicated to a single core business platform, will provide Dianne’s Fine Desserts with the focus to excel in the premium dessert sector,” says Dan Scales, President of Dianne’s Fine Desserts. “The company enjoys strong core markets and an established customer base that will benefit from our single-minded approach toward creating inspiring desserts that perfectly complement and anticipate consumers’ demands for eye-popping, memorable and delicious products.”