Dave's Killer Bread sells 50% stake to private equity firm
By Erik Siemers
Shobi, Dave and Glenn Dahl of Dave's Killer Bread. The Milwaukie-based bread-maker has sold a 50 percent stake in the company to New York private equity firm Goode Partners LLC.
Dave's Killer Bread on Thursday announced that a New York private equity firm has acquired a 50 percent stake in the company, giving it both experienced leadership and capital to enter the next phase of growth.
The Goode Partners LLC, whose portfolio of companies includes Utah-based headphones brand Skullcandy and Texas-based Mexican restaurant chain Chuy's, will now be an equal partner in one of the baking industry's fastest growing brands.
In addition to bringing on a new partner, Dave's Killer will take on a new chairman — baking industry veteran Angelo Fraggos — and plan to hire a new CEO sometime in 2013.
Terms of the deal weren't disclosed, though Goode’s website says it typically focuses on high-growth companies requiring between $10 million and $30 million in equity capital.
It's that rapid growth that precipitated the Milwaukie-based company's search for new partners.
Dave’s Killer Bread made its debut in August 2005, the brainchild of Dave Dahl, who ended two decades of criminal activity to rejoin his family bread business and remake his life. He ended up remaking the family business.
In the time since, sales have jumped from $3 million to $53 million, with most of the growth limited to just Oregon and Washington. The company employs 270.
The Dave's Killer brand is now sold in 11 states, with plans to reach new markets in the coming year, including Chicago and Texas.
“It only seems logical and reasonable for us to meet the demand if it’s everywhere,” said Dave Dahl, the company's president.
But in order to do so, the Dahl family — including CEO Shobi Dahl, who took over last year from his father, Glenn Dahl — came to the difficult conclusion that they couldn't manage that growth on their own.
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