Bain Capital is reportedly considering a sale or initial public offering (IPO) of its portfolio company, Dessert Holdings. The transaction could value the maker of cakes, pies and cookies at over $3 billion, according to sources familiar with the matter. Dessert Holdings supplies desserts to grocery stores, restaurants, and other foodservice customers across North America. The company generates over $200 million of annual earnings before interest, taxes, depreciation and amortisation and roughly $1 billion in annual revenue.
Bain Capital has enlisted Goldman Sachs and Bank of America to manage a dual-track process, encompassing both a potential sale and an IPO. Sources involved requested anonymity as the deliberations are confidential. Dessert Holdings, launched by Gryphon Investors in 2016 and acquired by Bain in 2021, has expanded significantly under Bain’s ownership.
Dessert Holdings operates several brands, including Steven Charles, The Original Cakerie, Lawler’s Desserts, Atlanta Cheesecake Company, Dianne’s Fine Desserts, Kenny’s Great Pies, and Willamette Valley Pie Company. Bain Capital, the owner, is a global private investment firm that invests across asset classes including private equity, credit, public equity, venture capital and real estate. Goldman Sachs is an investment bank that provides a range of financial services to corporations, institutions, governments, and individuals.
Neither Bain Capital, Dessert Holdings, Goldman Sachs, nor Bank of America have offered official comments on the potential transaction. This move aligns with a broader trend of sponsor-backed consumer companies exploring public markets as an exit strategy after a period of relative inactivity. KKR is also reportedly working on an IPO for its beauty company, Wella, and Blackstone is preparing its restaurant chain Jersey Mike’s Subs for a public listing.
