CHARLOTTE, NC — Krispy Kreme announced the sale of its majority ownership of Insomnia Cookies to investment holding company Verlinvest and private equity firm Mistral Equity Partners.
“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,” said Seth Berkowitz, founder of Insomnia Cookies who will continue to serve as CEO.
The deal closed on July 17, with the donut brand receiving $127.4 million for the transaction and $45 million to follow when Insomnia refinances the intercompany debt. The Charlotte, NC-based donut brand began exploring strategic alternatives for Insomnia last fall.
“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 daily while also further strengthening our balance sheet,” said Josh Charlesworth, president and CEO of Krispy Kreme.
The donut brand will remain a 34% minority shareholder of the cookie bakery chain. Krispy Kreme intends to use the proceeds to strengthen its business, expand availability and pay down debt.
