Houston favorite Shipley Do-Nuts has a new owner. Private equity firm Peak Rock Capital has announced that it has bought the company from the Shipley family. Terms of the deal were not disclosed.
Known for its donuts and kolaches, the Houston-based company has more than 300 locations in nine states. The acquisition allows the company to grow with both existing franchisees and find new opportunities in other markets.
“My grandfather, father and I have dedicated our lives to serving Shipley Do-Nuts, our franchisees and our guests. After an extensive search, it became clear that Peak Rock Capital was the ideal steward of our company as it pursues the next phase. of growth, ”said Lawrence Shipley III in a statement. “My family is delighted to continue as investors in the business and we look forward to the exciting growth to come.”
With the completion of the purchase, Shipley has stepped down from his position as president of the company. According to a press release, he will focus on other family investments.
“Shipley is a great opportunity to invest in a well-loved consumer brand with an established reputation for authenticity and quality,” added Robert Strauss, President of Peak Rock. “We are incredibly impressed with the franchise the Shipley family has built and we look forward to working with the company’s management team to invest in their growth plan.”
Peak Rock Capital is an Austin-based “mid-market private investment firm” with investments in a variety of companies in both the US and Europe. The other holdings include Halo Foods Ltd., a snack maker, and Turkey Hill, a ice cream and refrigerated beverage company.
Shipley Do-Nuts is the latest Texas brand to be acquired by a private equity firm. In November, Torchy’s Tacos announced it had received an investment of $ 400 million that will allow it to expand to 10 other states over the next four years. Chicago’s BDT Capital Partners acquired a majority stake in Whataburger in 2019 with plans to expand the brand.