Detroit-based PE firm Superior Capital Partners, LLC sold Dianne’s Fine Desserts to an affiliate of Geneva Glen Capital. Dianne’s, headquartered in Newburyport, Massachusetts, provides frozen desserts to the food service industry. Financial terms were not disclosed.
Superior Capital Partners, LLC, a Detroit-based private equity firm, announced today that it has sold its portfolio company, Dianne’s Fine Desserts, to an affiliate of Geneva Glen Capital. Based in Newburyport, MA, Dianne’s is a leading provider of premium frozen thaw-and-serve desserts to the foodservice industry, highly regarded national restaurant chains, and the in-store bakeries of national grocery chains.
Superior acquired Dianne’s in partnership with industry executives Mike Knowles and Dan Scales in a carve-out transaction from Heinz Foodservice in 2012. Over Superior’s four year ownership period, the Company has broadened its product line, won exciting new accounts, penetrated the in-store bakery channel, and built out an industry-leading infrastructure with a focus on innovation, quality, and service.
Andrew Wiegand, a Managing Director at Superior, stated, “The Dianne’s investment provides a perfect example of the types of investments that we seek to make as a special situations fund. In Mike and Dan, we partnered with two of the top executives in the baked goods industry and provided them with the assistance and support they needed to take an orphaned and under-performing division of Heinz and establish Dianne’s as a leading player in the industry. We invested heavily in the company’s systems and production facilities and completed an acquisition to realize over 50% revenue growth and a ten-fold increase in earnings. The Company is now extremely well positioned to realize growth over the long-term.”
Mike Knowles, Dianne’s CEO, commented: “We wish to thank Superior for their partnership throughout an exciting four-year period. Their support in effecting a highly successful carve-out and their shared vision for growth were instrumental to the success that Dianne’s has achieved. We appreciate their contributions and look forward to our partnership with Geneva Glen Capital to execute on the next phase of our growth.”
Mark Carroll, Superior’s Managing Partner, added: “We are extremely happy with the results of the Dianne’s investment and the culmination of our partnership with Mike and Dan. It’s particularly gratifying to see our special situation investment thesis lead to the creation of an industry leading company with such a bright future. It is also evidence that our well executed strategy is generating the types of returns that we sought when we established Superior Capital. Dianne’s represents only the second exit of the Superior Fund and we’ve already returned over 100% of all called capital. The Fund has four investments remaining that we are continuing to cultivate and grow.”
About Superior Capital Partners, LLC:
As a special situations fund, Superior combines capital, transaction experience and operational improvement expertise with proven management teams who have the vision, capability and commitment to successfully improve and grow their businesses. Superior seeks to acquire or recapitalize niche manufacturers, value-added distributors and specialty service companies. Since its founding in 2007, Superior has acquired or invested in 21 companies. Generally, these companies will have annual revenue of$10 to $150 million, identifiable growth opportunities and the need for capital and resources to implement a growth and recovery plan.