Sweets From The Earth Poised For U.S. Expansion Following PE Deal

Sweets from the Earth, a Toronto-based manufacturer of vegan and allergen-free sweet baked goods, has been acquired by Canadian firm Fengate Private Equity. Financial terms of the transaction were not disclosed.

Founded in 2002, Sweets from the Earth produces egg-free, dairy-free cakes, cookies, muffins, bars and squares in dedicated nut-free and wheat-free bakeries. The products are available at natural food stores, grocery stores, cafes and restaurants across Canada. The new partnership with Fengate is expected to support continued growth throughout North America.

Founder and co-CEO Ilana Kadonoff and co-CEO Marc Kadonoff will retain a “significant minority stake” and will continue to lead the business.

“Fengate has demonstrated a deep understanding of our business from the outset and offers the resources and capabilities necessary to accelerate growth,” said Marc Kadonoff in a statement. “We are highly aligned with Fengate on our ambitious growth plan for the company, and look forward to expanding our business across Canada and in the U.S.”

The deal marks Fengate’s second food and beverage transaction of the past 18 months. Early last year, the group acquired Saco Foods, the parent company of Dolci Frutta, California Sun Dry, Solo Foods, and Hoosier Hill Farm. Saco Foods later acquired Quinoa Corporation and its brands Ancient Harvest and Pamela’s.

Miller Thomson LLP was legal advisor to Fengate, and Royal Bank of Canada provided debt financing for the transaction. Cassels Brock & Blackwell LLP acted as legal advisor to the Sweets from the Earth, while Deloitte Corporate Finance Inc. served as financial advisor.

Sweets from the Earth has “established a market-leading position through its truly unique product offering, which has been built on many years of quality and innovation. They are a perfect fit with our strategy of backing strong management teams with ample runway for growth, and we’re proud to support Canadian entrepreneurs and brands,” said Jennifer Pereira, managing director and head of Fengate Private Equity, in a statement.