Levine Leichtman Capital Partners Acquires Shipley Do-Nuts to Accelerate Growth

Levine Leichtman Capital Partners Acquires Shipley Do-Nuts

In a significant move within the food and beverage industry, Levine Leichtman Capital Partners (LLCP), a prominent private equity firm, has officially acquired Shipley Do-Nuts. This transaction, which was executed in partnership with Shipley's management team, signals a strategic intention to expand one of the nation’s beloved donut brands. Shipley Do-Nuts, based in Houston, Texas, has been operational since 1936 and is well-regarded for its high-quality, handcrafted donuts and kolaches, available from over 375 locations across 14 states.

While the financial specifics of the deal remain undisclosed, it is recognized as a major step in bolstering Shipley's growth trajectory. CEO Flynn Dekker and his team will continue to lead the company from its Houston headquarters, focusing on further amplifying its market presence. “This partnership presents an incredible opportunity for Shipley to accelerate our growth and reach a wider audience while maintaining our commitment to fresh-made quality,” Dekker stated.

LLCP has expressed enthusiasm about the deal, highlighting Shipley’s robust growth pattern and stellar reputation built over the last nearly 90 years. Matthew Frankel, Managing Partner at LLCP, emphasized their excitement in partnering with the existing management team, who have successfully executed a growth strategy. “We see immense potential in expanding the unit count and driving same-store sales growth,” Frankel elaborated.

Greg Flaster, Managing Director at LLCP, echoed these sentiments, noting Shipley's advantageous position in the market regarding fresh products and customer loyalty. “The success achieved by the Shipley management team has drawn our interest, and we believe that our extensive background in franchising will aid in launching various growth initiatives alongside them.”

This acquisition marks LLCP's fourth platform investment in the franchise sector, joining an impressive portfolio that includes investments in Tropical Smoothie Cafe and Nothing Bundt Cakes. Shipley's acquisition is recognized as LLCP’s 18th franchising investment, illustrating the firm’s commitment to expanding in the franchising space.

As further growth unfolds, both Shipley and LLCP are determined to enhance the brand's positioning and continue its legacy as a leader in handcrafted donuts. LLCP uses a unique Structured Private Equity investment strategy, effectively blending debt and equity to provide customized growth capital tailored to the needs of management teams. With a dynamic approach, LLCP believes it can offer a more appealing alternative to traditional investment routes.

With a track record spanning over 41 years, LLCP has managed approximately $18.1 billion across nearly 20 investment funds. The firm’s connections in the marketplace allow it to support companies, like Shipley, using its extensive experience to streamline growth processes.

In closing, Shipley’s respected history and commitment to quality, combined with LLCP's expertise, promise a vigorous partnership aimed at securing a dominant position for Shipley Do-Nuts in the competitive landscape of the food industry. Together, they are setting the stage for a flavorful future.

For media inquiries, please contact Isabel Moon at [email protected] or visit Levine Leichtman Capital Partners’ official website for more information about their investments and future endeavors.