Malley's Candies
Carleton McKenna & Co, a Cleveland-based investment bank, acted as the exclusive financial representative to Malley’s Candies in its strategic recapitalization with Promise Holdings, LLC
Press Release
Malley’s Candies, the 88-year-old iconic chocolate brand, announced the successful completion of an investment from a Chicago-based, consumer-focused private holdings company.
Malley’s Candies was founded during the height of the Great Depression and continues to provide families and chocolate lovers alike with sweet treats and ice cream combinations to remember. In its third generation of family ownership, Malley’s branded and dedicated retail operations include 19 stores across Northeast, Ohio as well as a modern chocolate-making factory that occupies a five-acre, 60,000 sq. ft. facility.
Mike Malley, Adele Malley (Sis), Dan Malley and Bill Malley Jr. will remain in their operational roles with the business and will remain as Malley’s Candies largest shareholders. “This recapitalization of Malley’s will position us to grow and prosper for the next 88 years,” Mike Malley said.
This recapitalization allows the Malley family to bring in outside expertise and capital to help grow the brand inside and outside of Ohio. Promise Holdings has meaningful operational experience in confection, food manufacturing and retail. Founder Gordon Liao shared that he is excited to be able to work with management to grow such a well-respected brand like Malley’s. This new partnership will bring more of a focus to the company’s e-commerce platform and reach while growing the company’s retail presence.
Industry Expert
Alexis M. Becker
Vice President
Industry Expert
Nora T. Mahoney
Managing Director
Case Study
Malley’s Candies is a manufacturer and multi-unit retailer providing specialty confectionary products across Northeast Ohio. As a regional institution for over 88 years, the Company was owned by the founding family, now in its 3rd generation. Carleton McKenna was engaged as a sell-side advisor to help the six sibling owners bring in a strategic partner to sell or recapitalize the business and allow some of the siblings to take chips off the table and transition out. Some of the family members wanted to stay in the business, so it was important for the selected investment partner to recognize the family legacy and maintain the community-oriented and high-quality reputation within Northeast Ohio.
Carleton McKenna ran an extensive and competitive, but confidential marketing process, and was able to minimize rumors of a transaction within the close-knit Cleveland community. Given the family’s desire to retain meaningful equity and operating participation, Carleton McKenna focused on family offices and longer-hold investment firms with strong experience in the food and beverage, confectionary and retail spaces. CM&Co was able to drive the highly experienced, structurally flexible and preferred partner to an increase of 10% beyond their initial IOI submission. Further, all family members were able to roll-over their respective desired amount of equity and have the option of continuing operationally or not.
