Snow Phipps has sealed an exit of cake decorations supplier DecoPac to fellow private equity house Kohlberg & Company.
DecoPac was picked up by Snow Phipps in 2017 through a recapitalisation deal to transition the company from family ownership, with plans to grow the business across Canada, the US and Europe.
Michael McGlynn, the then CEO whose family founded DecoPac’s predecessor in 1919, became non-executive co-chairman of the board at that point.
DecoPac supplies cake-decorating ingredients and products to in-store bakeries in supermarkets, which are used to create decorated cakes for celebrations like birthday parties and graduations.
It offers products including sprinkles, fondant, pastry bags as well as inedible figurines.
Snow Phipps partner Alan Mantel said, “DecoPac is an undisputed market leader that brings innovation to classic and enduring traditions for celebrations.
“It has been our pleasure to have contributed to their recent success and transition from family ownership.”
Seth Hollander, partner at Kohlberg, said, “A business with DecoPac’s market position and distribution capabilities represents a unique investment opportunity.”
Last month AltAssets revealed the team behind Snow Phipps were naming their successor firm TruArc Partners amid eyeing up to $1bn for its first fund.
TruArc’s Ogden Phipps II, Alan Mantel, John Pless and Steven Schwinger have registered the fundraise with the US SEC, calling the vehicle TruArc Fund IV.
The firm will continue to manage Snow Phipps’ first three funds, which total about $2.4bn according to its website.
Snow Phipps closed its third fund in 2016 with about $913m of commitments.
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Source: https://www.altassets.net/private-equity-news/by-news-type/deal-news/snow-phipps-seals-decopac-exit-to-kohlberg-co-after-successful-transition-from-family-business.html
