Texas’ legendary Shipley Do-Nuts has a new owner. Austin-based private equity firm Peak Rock Capital announced it had bought the company from the Houston-based Shipley family. The terms of the contract were not disclosed.
Known for its donuts and kolaches, the company has more than 300 locations in nine states, including seven in Austin. The acquisition enables the company to both grow with its existing franchisees and to find new opportunities in other markets.
“My grandfather, father, and I dedicated our lives to serving Shipley Do-Nuts, our franchisees, and our guests. After a thorough search, it became clear that Peak Rock Capital was the ideal steward of our business when it came to the next level.” goes of growth, “said Lawrence Shipley III in a statement. “My family is excited to continue investing in the company and we look forward to the exciting growth to come.”
Upon completion of the purchase, Shipley has retired from his position as president of the company. It will focus on other family investments, according to a press release.
“Shipley is an exciting opportunity to invest in a popular consumer brand with an established reputation for authenticity and quality,” added Robert Strauss, Managing Director of Peak Rock. “We are incredibly impressed with the franchise that the Shipley family has built and look forward to working with the company’s management team to invest behind their growth plan.”
Peak Rock Capital is an Austin-based “medium-sized private investment firm” with investments in various companies in the US and Europe. Other holdings include the snack manufacturer Halo Foods Ltd. and Turkey Hill, a company that makes ice cream and chilled drinks.
Shipley Do-Nuts is the newest brand in Texas to be acquired by a private equity firm. In November, Torchy’s Tacos announced that it has received a $ 400 million investment that will allow it to expand to ten more states over the next four years. Chicago-based BDT Capital Partners acquired a majority stake in Whataburger in 2019 to expand the brand.