Snow Phipps Says Kohlberg Breaking DecoPac Deal Over Pandemic

Private equity firm Snow Phipps Group LLC sued affiliates of Kohlberg & Co. in Delaware, claiming the investment consortium is trying to back out of a deal to acquire DecoPac Inc., the world’s top wholesaler of cake decorations, over coronavirus concerns.

“This case concerns a sophisticated commercial party’s deliberate effort to sabotage an acquisition to which it agreed a mere five weeks ago, when it was aware of the risks of Covid-19 and the related economic downturn,” the lawsuit says.

It accuses the Kohlberg entities of making “an abrupt about-face” after their attempts to renegotiate their financing broke down, then ...