LDC, the private equity investor which is part of Lloyds Banking Group has agreed to exit its investment in a Bristol bakery Cakesmiths to European player in frozen pastries and snacking products Onore.
Over the two-year partnership, the independent manufacturer of artisan handmade cakes secured high-profile client wins, upgraded its digital platforms to almost treble revenue and EBITDA, whilst also investing in headcount and operations.
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In March 2022 LDC made what it calls a "significant investment" in Cakesmiths and over the two years invested more than £2m to scale its operations, sales and marketing, which included a rebrand. The business has also continued to invest in talent across its organisation, and today employs more than 200 people, growing from 110 when LDC first partnered with the team.
Chief executive Chris Ormrod, alongside the rest of Cakesmiths’ management team, will continue to lead the business, which will trade under its current branding as part of the Onore Food Group. Headquartered in France, Onore is backed by private equity investor Waterland and is a leading manufacturer and supplier of premium bakery products with plans to increase its footprint across Europe and other international markets.
Mr Ormord said: “It’s hugely satisfying to look back on everything we’ve achieved in the last two years, and we’re delighted to become part of the Onore Food Group – a move that will help our long-term growth ambitions. Demand for our amazing cakes shows no sign of slowing and we’re now perfectly positioned to share them with more people around the world as part of Onore.
“This is the second time I’ve worked with LDC and, as always, they are a class act who have supported us every step of the way. I like the way that LDC support management and challenge us to be better in many different areas. It’s been a pleasure working with Stefan, James and the broader LDC team and I would always place them top of my list for private equity support.”
Stefan Gunn, Investment Director at LDC, added: “Cakesmiths’ rapid growth is all down to the team’s passion for their cakes and commitment to innovation and service excellence. Together, we quickly identified the online platform as an essential channel to drive growth, and it’s wonderful to see it become an even more important part of the business’ offering, with almost 70% of Cakesmiths’ volumes being ordered online and delivered next day. It’s also been great to partner with the irrepressible Chris Ormrod again and also support a team based just down the road from our Bristol office. They are now ready to fly the flag for the city internationally, and we wish them every success.”
The transaction is expected to complete in January 2024.
