San Francisco-based private equity firm, Gryphon Investors has expanded its dessert platform, with the acquisition of Houston-based Lawler Foods for an undisclosed amount. Lawler Foods is a 40-year old family-owned business that produces gourmet cheesecakes, layer cakes, pies, and other desserts for North American foodservice and retail outlets.
This is the second acquisition for Gryphon’s dessert platform in the past year the Gryphon Investors and is expected to prove highly complementary to Gryphon’s December 2015 acquisition of The Original Cakerie. Canadian-based The Original Cakerie produces high-quality frozen desserts serving more than 300 customers across the U.S. and Canada.
The latest acquisition of Lawyer Foods represents an outstanding strategic fit for Gryphon’s premium dessert platform,” said Keith Stimson, Partner at Gryphon in a company statement. “Lawler Foods’ long-term focus on producing best-in-class quality products is consistent with The Original Cakerie’s own commitment to quality. With little overlap in product offerings and customers between the two businesses, we are confident that the two companies will help expand our customer relationships with leading North American retailers and foodservice accounts.”
As part of the agreement, Lawler Foods’ current vice-president, Wes Stasny will be promoted to president of the company while the balance of the company’s management team will remain in their current positions. No information was given regarding the status of the company’s current president and son of the company’s founders, Mike Lawler, who has been president since 2007.
The 2013 Dessert Consumer Trend Report issued by Technomic Inc. states that dessert consumption is climbing as the category expands to include a wider range of offerings. As discretionary spending increases, consumers no longer consider desserts for only following a meal, instead opting for dessert foods throughout the day. Forty percent of consumers now eat dessert two or more times per week, up from 36% in 2011, according to the report. This growth of popularity together with shifts in population and wealth demographics have drawn investors and larger corporations to make investments in the space.
In December 2015, Parmalat Australia Pty Ltd. bought Fonterra’s Australian yogurt and dairy dessert business for an undisclosed amount. More recently, this May, Dean Foods announced it agreed to buy the manufacturing and retail unit of Friendly’s Ice Cream for $155 million in cash, and in June of this year, Danone’s newly launched venture capital fund, Danone Manifesto Ventures, made its first investment for a minority stake in France’s Michel et Augustin, a producer of premium biscuits, dairy products fresh desserts and beverages.
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Lynda Kiernan