Kohlberg Ordered to Close Cake Deal It Backed Out of Over Covid

Snow Phipps Group LLC won its bid to close on the private equity sale of DecoPac Inc. by court order, when a Delaware judge on Friday rejected Kohlberg & Co.'s attempt to back out of buying the cake decorations wholesaler over the Covid-19 pandemic.

Vice Chancellor Kathaleen S. McCormick sided with Snow Phipps on “all issues” in a post-trial ruling for Delaware’s Chancery Court, ordering Kohlberg to consummate the merger. She said she was “chalking up a victory for deal certainty.”

The ruling appears to be the first to hand a win to any of the companies that sued in ...