Chris Ormrod, chief executive of dessert maker Ministry of Cake is targeting turnover of £40m following its acquisition by French counterpart Mademoiselle Desserts.
The company, which has manufacturing facilities in Taunton and Torquay, currently has a turnover of £30m per year. It employs 400 staff and counts pub and restaurant chains such as JD Wetherspoon, TGI Friday and Whitbread as clients.
Mademoiselle Desserts has acquired a majority shareholding in the business for an undisclosed sum. The current management team, led by Chris Ormrod, will remain with the business.
Ormrod told Insider: “When I originally bought Ministry of Cake I made sure I knew about the potential exit routes. Mademoiselle Desserts was identified along with a couple of others as potential partners.
“If I could have put a bullseye over the company that suited us best, I would have picked them.
“We want to become a £40m turnover business. We’ve launched a number of new products in the UK recently and we’re exporting more than ever before. Exports are an area where the new owner will really be able to help.”
Ministry of Cake was previously acquired by its management, led by Ormrod, in 2014 in an £11m deal backed by private equity firm LDC.
Following the buyout, revenues increased from £20m to almost £30m, while the number of employees grew from 300 to 400.
Alistair Pendleton, head of LDC in the South West and Wales, said: “During LDC’s partnership with Ministry of Cake we have worked with the business and achieved impressive scale through organic growth and a targeted investment strategy.
“It has now solidified its position as a market leader in the food service industry and expanded its reach to the continent and beyond. The outcome shows just how powerful a catalyst private equity can be for ambitious management teams of Britain’s small and mid-sized companies.”
LDC and shareholders were advised by Deloitte (Martyn Gregory), Osborne Clarke (Alisdair Livingston). Momentum (Alastair Boorman) advised the management team and vendor financial due diligence was undertaken by KPMG (Kay Drury).
Momentum partner Alastair Boorman said: “Having advised the management team on the original MBO with LDC in 2014 it was great to work with them again on this deal.
“Momentum have built a long and established track record of providing independent advice to management teams through the entire private equity lifecycle – from inception of the buyout, growth and then eventual exit. We wish the team all the best on the next stage in their journey as part of Mademoiselle Desserts.”