PHILADELPHIA — Over the past few years, Charlotte, NC-based Krispy Kreme has considered its options regarding its shares of Philadelphia-based Insomnia Cookies. In fall 2023, the donut brand began exploring strategic alternatives and by July 2024, Krispy Kreme sold its majority stake in the late-night cookie brand to investment holding company Verlinvest and private equity firm Mistral Equity Partners.
On June 10, Krispy Kreme sold its remaining stake in Insomnia to the companies, receiving aggregate cash proceeds of $75 million, which are expected to pay down fees and expenses related to the transaction.
“We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth,” said Josh Charlesworth, CEO of Krispy Kreme. “This is an important step as we focus on our two biggest opportunities: profitable US expansion and capital-light international franchise growth. We wish Insomnia Cookies and their ownership group well as they work to realize the full potential of this unique brand.”
This financial move marks a crucial moment for the cookie company and its next phase of growth.
“We’re united by a shared vision: to establish Insomnia as the undisputed leader in the indulgence category,” said Seth Berkowitz, CEO and founder of Insomnia Cookies. “With this support, we’re poised to rapidly scale and deliver more warm, delicious cookies to Insomniacs around the world.”
Insomnia Cookies also announced the addition of three leaders selected to fortify its executive team. This includes Brent Chu as CFO, Katie Seawell as chief marketing officer and Stephanie Boughner as chief people officer.
Working in tandem with Verlinvest and Mistral will help Insomnia’s global growth goals, which include scaling to 1,800 bakeries over the next 10 years.
