NewSpring announced that NewSpring Franchise (the firm’s strategy dedicated to investing in innovative franchise and multi-unit concepts in large and growing markets) has invested in Shake Smart Holdings, a leading healthy, fast-casual concept. Shake Smart will use the funding to continue its rapid unit expansion. The terms of the deal were undisclosed.
Launched in 2011 and headed by co-founder and CEO Kevin Gelfand, Shake Smart offers healthy, nutritious, and delicious protein shakes, protein smoothies, acai bowls, wraps, nut butter, avocado toast, etc. to its customers across multiple dayparts. Now the majority of Shake Smart locations are on college campuses.
This deal is the third out of NSF II – which is NewSpring Franchise’s dedicated investment fund. This funding round is consistent with the firm’s approach in targeting capital-efficient, consumer-facing, and multi-unit businesses with a strong customer value proposition, proven unit-level economics, and strong management teams in the lower-middle market. And the strategy’s recent investments also included Blo Blow Dry Bar, Duck Donuts, Central Bark, Federal Donuts and Chicken, and Green Home Solutions.
NewSpring Franchise founders Satya Ponnuru and Patrick Sugrue will join the Shake Smart Board of Directors in connection with the funding.
Tecum Capital and NorthCoast Mezzanine provided mezzanine debt financing and equity co-investment for the deal. Miller & Martin PLLC served as counsel for NewSpring, and Brookwood Associates and Davis Wright Tremaine LLP advised Shake Smart management.
KEY QUOTES:
“Shake Smart was founded to provide healthy, delicious, and nutrient-dense food and beverages to students and consumers with increasingly on-the-go lifestyles. Our team has successfully grown the concept to over 45 locations across the U.S. I am excited to partner with NewSpring Franchise founders Satya Ponnuru and Patrick Sugrue as Shake Smart looks to accelerate unit openings even further in this next phase of growth. Their investment and operating experience will be integral as we continue our expansion.”
– Kevin Gelfand, Co-Founder and CEO of Shake Smart
“Shake Smart is a leader in the growing healthy fast-casual category, establishing its brand and customer value proposition with a differentiated product offering. It represents exactly the type of company we seek to apply our proven approach to building multi-unit brands. Together with our deep networks, access to human capital, and experience in the franchise restaurant industry, we hope to infuse Shake Smart with the right balance of operational expertise and infrastructure to enable its continued fast growth nationwide.”
– Satya Ponnuru, NewSpring General Partner
