Krispy Kreme announced the sale of a majority ownership stake of Insomnia Cookies to Verlinvest and Mistral Equity Partners. This deal was set up as $350 million in total enterprise value, which has doubled since Krispy Kreme’s 2018 acquisition.
The deal closed on July 17, 2024. And Krispy Kreme received $127.4 million for the sale and expects to receive an additional $45 million in the coming weeks following an Insomnia Cookies refinancing of intercompany debt.
Krispy Kreme plans to use the proceeds to further strengthen its fresh doughnut business and expand availability, and pay down debt. And it will remain as an approximately 34% minority shareholder in Insomnia Cookies.
Evercore and Morgan Stanley & Co. LLC acted as financial advisors in the transaction.
KEY QUOTES:
“As we build a bigger and better Krispy Kreme, this transaction allows us to focus on our core strategy of producing, selling, and distributing fresh doughnuts daily while also further strengthening our balance sheet.”
“Following a thorough review, we are confident that Verlinvest and Mistral are the right partners to share in the success of Insomnia Cookies given their food industry experience and long-standing track record of value creation.”
– Josh Charlesworth, Krispy Kreme President and CEO
“Building off of a very successful five-year partnership with Krispy Kreme, we’re thrilled to welcome Verlinvest and Mistral to this new chapter of our journey.”
– Insomnia Cookies Founder Seth Berkowitz, who will continue in his role as CEO
“We are enthusiastic about our investment in Insomnia Cookies, an incredible brand so close to our core DNA and at a pivotal point in its growth trajectory. We’re eager to support Seth and help unlock the full potential of the business both in the US and internationally.”
– Clément Pointillart, Verlinvest Managing Director
“We are excited to partner with the company through the next phase of its growth. Having known Seth since 2004, we are delighted to have the opportunity to work with him again as well as the best-in-class teams at Krispy Kreme and Verlinvest.”
– Andrew Heyer, Founder and CEO of Mistral Equity Partners
