Krispy Kreme Gains $75M in Sale

After selling a majority ownership stake of Insomnia Cookies nearly a year ago, Krispy Kreme has sold its remaining stake in the brand.

According to the announcement, Krispy Kreme received aggregate cash proceeds of $75 million from the transaction. The funds will be used for debt paydown after transaction-related fees and expenses.

“We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth,” states Krispy Kreme CEO Josh Charlesworth. “This is an important step as we focus on our two biggest opportunities: profitable U.S. 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.”

In turn, Verlinvest and Mistral Equity Partners announced that they increased their investment in Insomnia Cookies, acquiring Krispy Kreme’s stake.

“This transaction represents a pivotal moment in accelerating Insomnia’s growth trajectory,” says Verlinvest. “Backed by an industry-leading economic model, a passionate cult-like brand following, and a powerful omnichannel strategy, Insomnia has achieved double-digit annual revenue increases and robust profit expansion through both organic growth and new bakery openings. With this added investment, Insomnia is poised to deliver sustained, ambitious growth and scale to 1,800 new bakery openings globally over the next decade.”