Dessert Holdings, a portfolio company of Bain Capital Private Equity, has added on with the buy of Kenny’s Great Pies from Kaho Partners.
Kenny’s Great Pies is a manufacturer of branded and private label pies and pie fillings sold through grocery stores, distributors, chain restaurants, and convenience stores. The company’s products come in a variety of flavors including key lime, lemon, mango, coconut cream, peanut butter, and chocolate silk.
Kenny’s Great Pies, led by CEO Gary Muter, makes and sells more than 2.5 million pies per year that are sold nationally and internationally in more than 6,000 stores. The company was founded in 1989 by Kenny Burts and operates a state of the art, purpose-built facility with newly installed automated mixing and filling lines, located northwest of Atlanta in Smyrna, Georgia.
Kaho Partners acquired Kenny’s Great Pies from Mr. Burts in April 2020. Under Kaho ownership, the company tripled revenue and quadrupled EBITDA.
“We are very fortunate to have partnered with Gary Muter and the entire Kenny’s team. Together, we dramatically grew the company and significantly professionalized its operations, all while improving product quality, on time delivery, and safety,” said Griffin Horter, the chairman of Kenny’s and a co-founder of Kaho. “We thank the Kenny’s team for their hard work and dedication to continuous improvement, which resulted in a fantastic outcome for everyone involved. We look forward to watching Kenny’s continue to thrive in its new partnership with Dessert Holdings.”
“Kenny’s achieved great things during our partnership with Kaho Partners,” said Mr. Muter. “We transformed the business by implementing a continuous improvement mindset rooted in the principles of Kaizen, instilling a culture of rigorous metric-based management, and professionalizing our operations – all of which paved the way for remarkable growth. As we embark on our next chapter, we are excited and confident that our partnership with Dessert Holdings will propel the company to even greater heights.”
Dessert Holdings was formed by Gryphon Investors in 2015 as a platform for its investments in British Columbia-based The Original Cakerie, a maker of frozen desserts, which was acquired in December 2015; Texas-based Lawler’s Desserts, a maker of cheesecakes, cakes and pies, which was acquired in July 2016; and Georgia-based Atlanta Cheesecake Company which was acquired in December 2017.
In June 2021, Gryphon sold Dessert Holdings to Bain Capital and under its ownership has added-on twice with the buys of Colorado-based Steven Charles, a maker of layer cakes, cheesecakes, and pies, in January 2022; and Massachusetts-based Dianne’s Fine Desserts, a maker of cheesecakes, layer cakes, specialty pies and tarts, in October 2022.
Today, St. Paul, Minnesota-headquartered Dessert Holdings goes to market under six premium dessert brands: Steven Charles, The Original Cakerie, Lawler’s Desserts, Atlanta Cheesecake Company, Dianne’s Fine Desserts, and now, Kenny’s Great Pies. The company’s products are sold to more than 250 customers in the United States, Canada, Mexico, the Caribbean, South America, and Asia.
“Kenny’s clean label, flavorful pies are complementary to our portfolio of premium desserts,” said Paul Lapadat, the chief executive officer of Dessert Holdings. “Kenny’s has established a distinctive market position, fostering a number of long-standing relationships with leading foodservice and retail operators, and major clubs in North America, earning a loyal consumer following. Dessert Holdings is excited to supplement these relationships and expand the company’s distribution network.”
“Since our initial investment in Dessert Holdings, the business has grown tremendously,” said Adam Nebesar, a partner at Bain Capital. “We are very pleased with the Desserts Holdings performance to date and look forward to partnering with Gary and the Kenny’s team to support their growth ambitions.”
Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media, and telecommunications sectors. The firm has a team of approximately 250 investment professionals with 23 offices on four continents including offices in Boston, Chicago, New York, San Francisco, Dublin, London, Munich, Melbourne, Mumbai, Hong Kong, Shanghai, Sydney, and Tokyo.
Kaho Partners specializes in acquiring family and founder-run businesses with greater than $2 million in EBITDA. The firm has an extended investment horizon and is backed by long-term investors who invest in businesses with the intention of holding them forever. Kaho Partners was founded by Max Katzenstein and Griffin Horter and is based in New York City.
Integris Partners was the financial advisor to Kenny’s Great Pies on this transaction.
© 2024 Private Equity Professional | May 21, 2024
