Argos Soditic backs Destiny Foods and CDD merger

Alice Tchernookova
16 December 2016

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Argos Soditic has invested in the merger of CM-CIC Investissement-backed La Compagnie des Desserts (CDD) and UK-based Destiny Foods.

The deal sees Argos Soditic take a majority stake in CDD's equity structure alongside CM-CIC and company founders Didier and Sylvie Barral.

According to the GP, the transaction will allow the founders to initiate a gradual management transition over a two-year period where they will focus on the group's international expansion.

Philippe Bonny, who takes a stake in CDD alongside Argos Soditic, will become the CEO of the newly formed group. He previously led the Hubert / Coup de Pates group between 1999-2015. The company's main managers will also invest for a stake in the group.

Earlier in 2016, CDD had expanded through the acquisition of New York-based ice-cream manufacturing facility Mont-Blanc Dessert, with the goal of developing its US presence. The group's revenues have increased by an estimated 12% over the last year to reach €61m, the group claims.

The investment marks the last investment made from the firm's fund VI as the investor moves towards its fund VII, for which it held a first close in November, the GP told unquote".

Previous funding
In June 2008, CM-CIC acquired a 57.9% stake in CDD for €10.5m EV. The deal value remained undisclosed.

Company
Founded in the 1980s, CDD produces and markets a range of ice creams, frozen cakes and pastries. The company is based in Lezignan Corbieres, France. The company currently generates €61m in revenues, and manages three frozen dessert manufacturing plants and one ice-cream factory in France, with sales subsidiaries in Spain, the UK, Switzerland and the US.

Founded in 1991 and based in Manchester, Destiny Foods is a manufacturer and distributor of specialist patisserie with a particular focus on frozen desserts. The group currently generates €15m in revenues.

People
CM-CIC Investissement – Frédéric Plas (managing director); Gilles Lorang (partner).