Private equity investor exits Cakesmiths following two years of growth

LDC, the private equity investor which is part of Lloyds Banking Group, has agreed to exit its investment in Cakesmiths to leading European player in frozen pastries and snacking products Onore (previously known as Boncolac).

During the two-year partnership, Cakesmiths secured high-profile client wins, significantly upgraded its digital platforms to almost treble revenue and EBITDA, whilst also investing heavily in headcount and operations.

Bristol-based Cakesmiths is an independent manufacturer of artisan handmade cakes. It supplies its range to customers across the UK through its direct-to-market online platform and through direct relationships with large independent coffee shops.

LDC made a significant investment in Cakesmiths in March 2022 to back the management team’s ambitious growth strategy. With LDC’s support, the business has secured several high-profile client wins, invested more than £2m to scale its operations and invested heavily in sales and marketing, including a successful rebrand. Cakesmiths has also grown its e-commerce offering during the partnership, with online sales in H1 2023 more than double its online sales for the entirety of 2021.

Since LDC’s investment, Cakesmiths has increased revenue by 164% and EBITDA by 260% over a two-year period. 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.

The transaction, led by LDC’s Stefan Gunn and James Garland, generates a 3x money multiple return and IRR of 81% for LDC.

CEO 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 manufacturer and supplier of premium bakery products with plans to increase its footprint across Europe and other international markets.

Chris Ormrod, CEO of Cakesmiths, 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.”