Artisan baker to enter new chapter with international partnership

Cakesmiths has announced new plans that will see it join forces with French bakery group Onore.

The artisan baker based in St Philip’s has had a two-year partnership with private equity investor LDC, which made a significant investment in the business in March 2022 to back the management team’s ambitious growth strategy.

Over the two-year period, the business has increased revenue by 164 per cent and EBITDA (earnings before interest, taxes, depreciation and amortization) by 260 per cent and LDC is now ready to exit its investment.

Cakesmiths 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. The business has also grown its e-commerce offering during the partnership – with online sales in first half of calendar year for 2023 more than double its online sales for the entirety of 2021.

The next chapter will see the baker join forces with Onore Food Group, a leading player in frozen pastries and snacking products in Europe (previously known as Boncolac).

Cakesmiths has announced new plans that will see it join forces with French bakery group Onore – photo: Cakesmiths 

Cakesmiths’ chief executive Chris Ormrod, alongside the rest of the 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 leading manufacturer and supplier of premium bakery products with plans to increase its footprint across Europe and other international markets.

On the latest chapter for Cakesmiths, Ormrod 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.”

The business has also continued to invest in talent across its organisation and 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, has generated a three-fold multiple return and internal rate of return (IRR) of 81 per cent for LDC.

Based at Kingsland Trading Estate on St Philip’s Road, Cakesmiths specialise in wholesale cakes, traybakes and flapjacks. Also, they offer a wide range of cakes including vegan and very low gluten options.

Stefan Gunn, Investment director at LDC, added: “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 per cent of Cakesmiths’ volumes being ordered online and delivered next day. They are now ready to fly the flag for the city internationally, and we wish them every success.”

Main photo: LDC

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