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
