Houston favorite Shipley Do-Nuts has a new owner. Private equity firm Peak Rock Capital announced it was buying the company from the Shipley family. The terms of the agreement were not disclosed.
Known for its fritters and kolaches, the Houston-based company has more than 300 locations in nine states. The acquisition will allow the company to grow with its existing franchisees and find new opportunities in other markets.
“My grandfather, father and I have dedicated our lives to serving Shipley Do-Nuts, our franchisees and our guests. After extensive research, it became clear that Peak Rock Capital was the ideal manager. of our business as the next stage of growth continues, “Lawrence Shipley III said in a statement. “My family is thrilled to continue as investors in the company and look forward to the exciting growth that will come.”
Upon completion of the purchase, Shipley has retired from his position as president of the company. According to a statement, it will focus on other family investments.
“Shipley represents an exciting opportunity to invest in a esteemed consumer brand with a well-established reputation for authenticity and quality,” added Peak Rock managing director Robert Strauss. “We are incredibly impressed with the franchise the Shipley family has built and look forward to working with the company’s management team to invest behind its growth plan.”
Peak Rock Capital is an Austin-based “mid-market private investment firm” with investments in various businesses in both the US and Europe. Other holdings include snack maker Halo Foods Ltd. and Turkey Hill, a company that makes ice cream and chilled drinks.
Shipley Do-Nuts is the latest Texas brand acquired by a privately held company. In November, Torchy’s Tacos announced that it had received a $ 400 million investment that would allow it to expand to 10 more states over the next four years. BDT Capital Partners of Chicago acquired a majority stake in Whataburger in 2019 with plans to expand the brand.