Mondelēz International Inc has closed its previously announced acquisition of Southampton, New York-based Tate’s Bake Shop, a premium cookie and baked goods provider, from The Riverside Company for about $500 million. TM Capital provided financial advice to Tate’s on the deal.
NEW YORK, June 7, 2018 /PRNewswire/ — TM Capital Corp. is pleased to announce that Tate’s Bake Shop – one of the fastest growing cookie brands in the U.S. and a portfolio company of The Riverside Company – has been acquired by global snack and beverage giant, Mondelēz International (NASDAQ: MDLZ). TM Capital served as a financial advisor to Tate’s in this transaction valued at approximately $500 million.
TM Capital previously advised Tate’s, and founder Kathleen King, in its 2014 recapitalization with The Riverside Company. Tate’s is renowned nationwide for its beloved, signature thin-and-crispy cookies made with simple, high-quality and authentic ingredients. Over the past five years, Tate’s has doubled its brand awareness and achieved a 4x increase in sales and earnings by deepening existing customer relationships, expanding distribution, boosting its national sales and marketing team, launching new products and significantly expanding and improving production processes.
Craig Gibson, Head of TM Capital’s Consumer Group, commented: “We told investors four years ago when we brought Tate’s to the market that this brand was going to be the next multi-hundred million dollar baked goods franchise. With Riverside’s extraordinary guidance and led by a superior management team, Tate’s has exceeded expectations.”
Mondelēz International (whose brands include Oreo cookies; Cadbury Dairy Milk and Milka chocolate; and Trident gum) will operate Tate’s as a separate standalone business to nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources to accelerate growth.
Tate’s Bake Shop
A nationally acclaimed brand of deeply delicious baked goods with a specialty bake shop in Southampton, N.Y., Tate’s is committed to creating classic American baked goods with simple, premium ingredients. Founder Kathleen King, who began selling small batches of her crisp, buttery, chocolate chip cookies at her family’s farmstead at just 11 years old, still perfects every recipe herself. Tate’s is the home of America’s top-rated chocolate chip cookie, available at grocery stores, gourmet shops and natural food stores nationwide, as well as online at www.tatesbakeshop.com.
The Riverside Company
The Riverside Company is a global private equity firm focused on making control and non-control investments in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 520 transactions. The firm’s international portfolio includes more than 80 companies. Visit www.riversidecompany.com for more information.
TM Capital Corp.
TM Capital is the client-first investment banking team advising leading companies across North America and around the world. We share a relentless commitment to engineering extraordinary outcomes with an unmatched standard of client care. Over the last three decades, TM Capital has completed more than 300 transactions with a combined value in excess of $20 billion. Our capabilities include: M&A; debt and equity financings; recapitalizations; restructurings; and board advisory services. We are a founding member firm of Oaklins, the world’s most experienced mid-market M&A advisor with 60 offices globally. For more information please visit www.tmcapital.com.