Is Tate’s for sale? They have hired a small investment bank in New York to run the process. Apparently they have EBITDA (or Earnings Before Interest, Tax, Depreciation and Amortization) of US$5m from revenue of between US$20m and US$30m. Tates Bake Shop retains TM Capital to explore sale, sources say 2/05/2014 Tate’s Bake Shop, the Southampton, New York-based maker and marketer of cookies and other baked goods, has retained TM Capital to explore a sale process, said two sources familiar with the situation. The privately held company, which generates between USD 20m and USD 30m in revenue, has already distributed sale books, the sources said. It is marketing itself as having around USD 5m EBITDA, the first source said. The origins of Tates date back to 1980 when founder Kathleen King opened her first bakery, according to the companys website. She later opened Tates Bake Shop based in the Hamptons. The company has since expanded beyond its flagship location and distributes cookies, brownies, pies and scones nationally. The company has driven part of its growth by positioning its product along the perimeter of retail outlets, an industry source said. Other similarly sized baked goods brands include Roxbury, Massachusetts-based Dancing Deer Baking Co., backed by Ironwood Equity and Generation Equity Investors since 2005. Privately held Dancing Deer, which generated USD 10m to USD 15m in revenue in 2011, previously told this publication it expected to exit once it added USD 5m in revenue. Tates has also entered the all-natural, gluten-free market, a sector that has been fairly active recently. In late April, Boulder, Colorado-based Rudis Organic Bakery was acquired by The Hain Celestial Group (NASDAQ: HAIN) for USD 61m. In addition, this news service reported in late January that Schiller Park, Illinois-based Enjoy Life Foods, a maker and marketer of allergy-friendly and gluten-free baked goods and snacks, had appointed Houlihan Lokey for a possible sale. TM Capital declined to comment for this story; spokespeople for Tate’s Bake Shop did not return a request for comment. Jonathan Fein, Associate BDA Suite 906 | ICBC Tower | 3 Garden Road | Central | Hong Kong jfein@bdallc | T +852 3527 5014 | M +852 6319 2660 | F +852 2537 4406 | bdallc New York | London | Bahrain | Mumbai | Ho Chi Minh City | Hong Kong | Shanghai | Beijing | Seoul | Tokyo Boutique Investment Bank of the Year – M&A Atlas Awards, October 2013
Posted on: Mon, 02 Jun 2014 23:21:20 +0000
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