Private equity group purchases Shipley Do-Nuts chain
In a significant move for the franchised donut industry, Levine Leichtman Capital Partners (LLCP) has acquired Shipley Do-Nuts from Peak Rock Capital. This marks the fourth platform investment in LLCP's current fund, and it positions Shipley, headquartered in Houston, as one of the largest donut and kolache franchised brands in the United States.
With over 375 locations across 14 states and more than 60 product varieties, Shipley Do-Nuts boasts a rich 90-year history. Under the leadership of CEO Flynn Dekker, the company has seen impressive growth in recent years.
During Peak Rock Capital's ownership, Shipley more than doubled its systemwide sales, achieved 18 consecutive quarters of same-store sales growth, and set records for new store openings. This was achieved through strategic investments in geographic expansion, product development, marketing cooperatives with franchisees, and infrastructure such as a new corporate headquarters and R&D lab.
LLCP plans to leverage its franchising investment experience to continue driving growth initiatives and capitalize on significant whitespace opportunities in the market. Compared to other franchised donut brands, Shipley stands out as a regional leader with a unique product offering and strong franchise growth momentum.
The acquisition by Levine Leichtman Capital Partners is focused on building on Shipley’s successful growth track record, leveraging LLCP’s expertise to expand the franchise network further, and strengthening Shipley’s franchise brand among regional and national competitors.
This is not the first time Shipley Do-Nuts has changed hands. The company was previously owned by the founding family until 2021, when it was sold to Peak Rock Capital. The sale of Shipley Do-Nuts marks the second change in ownership for the company in the past two years.
Franchised brands, like Shipley, have been popular targets for investors due to their lack of capital spending and less susceptibility to recessionary downturns. Other franchises, such as Tropical Smoothie, Dave's Hot Chicken, and Jersey Mike's, have been sold for high valuations over the past couple of years.
As Shipley Do-Nuts moves forward under its new ownership, it continues to stand as a testament to the potential of well-managed franchises in the food industry. With a strong foundation, a dedicated leadership team, and a supportive investor, Shipley Do-Nuts is poised for continued growth and success.
[1] Levine Leichtman Capital Partners Press Release, 2025 [2] Shipley Do-Nuts Annual Report, 2024
In this new phase under Levine Leichtman Capital Partners, Shipley Do-Nuts aims to leverage finance to pursue growth initiatives and capitalize on market opportunities, enhancing its position as a leading franchised donut brand. The acquisition signifies a shift in the company's lifestyle, ushering in an era of potential expansion and continued success.
The strategic financial investments made during Peak Rock Capital's ownership, such as expanding geographically, developing products, and enhancing infrastructure, have set the stage for Shipley Do-Nuts' strong financial performance, making it an attractive investment for Levine Leichtman Capital Partners.
