Cakesmiths, the innovative Bristol-based specialist baking firm, has been bought by a leading European frozen pastries and premium snacks group after achieving annual growth of more than 30%.
Launched in 2005, Cakesmiths – which supplies artisan handmade cakes to independent coffee shops across the UK – has expanded rapidly since private equity group LDC made a substantial investment in it just under two years ago.
Since then Cakesmiths has increased revenue by 164% and earnings before tax by 260%. It has also continued to invest in its workforce, growing it from 110 to 200-plus.
In addition, it has secured several high-profile client wins, invested more than £2m to scale its operations, and put money into sales and marketing, including a successful rebrand.
Now the firm has been snapped up by Onoré, a French group with sales of more than £200m across Europe.
Launched in the Basque Country in 1955 and previously known as Boncolac, it has already made two acquisitions in the UK this year, snapping up French-style macaron specialist Mag’M and Proper Cornish, the Cornish pasties market leader.
Cakesmiths CEO Chris Ormrod, who joined at the time of the LDC investment, will continue to lead the business alongside its management team. It will also continue to trade under its current branding as part of the Onoré Food Group.
He 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 Onoré 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 Onoré.”
The acquisition, financial details of which have not been disclosed, is expected to complete in January.
LDC investment director Stefan Gunn, who led the firm’s investment nearly two years ago, said: “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.”
Cakesmiths, based on the Kingsland Trading Estate in St Philips, caters to a wide range of palates, including a broad vegan and very-low gluten range – plus it prides itself on innovation and limited edition ‘small batch’ runs.
It has gained a strong reputation over the past few years for its tasty bakes – with eight of its products winning Great Taste Awards last year, including Billionaire’s Shortbread, Persian Love Loaf and Ultimate Carrot Cake.
It has also embraced sustainability, uses industry-leading reusable and recyclable packaging to keep its products fresh when being transported to customers.
LDC and Cakesmiths were advised by KPMG (M&A advisor), TLT (legal) and RSM Corporate Finance (financial). Management advisers were UGCC (French legal), Trowers and Hamlins (UK legal), KPMG (tax) and Momentum CF (management advice).
