EXCLUSIVE-Bain Capital explores sale or IPO of Dessert Holdings, sources say

By Abigail Summerville

Feb 19 (Reuters) - Bain Capital is considering a sale or initial public offering of its portfolio company Dessert Holdings that could value the maker of cakes, pies and cookies at over $3 billion, according to three people familiar with the matter.

The private equity firm has hired investment banks Goldman Sachs and Bank of America to run a dual-track process, the sources said, requesting anonymity because the deliberations are confidential.

Bain, Dessert Holdings, Goldman and Bank of America declined to comment.

More sponsor-backed consumer companies plan to test the public market this year as an exit route after a few low-volume years. KKR is working on an IPO of its beauty company Wella and Blackstone is preparing its restaurant chain Jersey Mike's Subs for a public listing, Reuters reported.

Private equity firm Gryphon Investors launched St. Paul, Minnesota-based Dessert Holdings in 2016. Bain acquired the company in 2021, when it operated three brands.

The company, which supplies desserts to grocery stores, restaurants and other foodservice customers across North America, has since expanded to seven brands. It generates over $200 million of annual earnings before interest, taxes, depreciation and amortization and roughly $1 billion in annual revenue, the sources said.

The brands include Steven Charles, The Original Cakerie, Lawler's Desserts, Atlanta Cheesecake Company, Dianne's Fine Desserts, Kenny's Great Pies and Willamette Valley Pie Company.