Photo courtesy of getty Images
Krispy Kreme, Inc. announced the sale of its majority ownership stake of Insomnia Cookies to Verlinvest and Mistral Equity Partners, July 22. Since Krispy Kreme’s 2018 acquisition of Insomnia Cookies, the enterprise value has doubled, landing its current value at $350 million.
Insomnia Cookies, headquartered in Philadelphia, PA, opened its first Dallas location in Deep Ellum in 2021, making it a staple late-night dessert option in the area. Since then, they have opened six more locations in the DFW area, according to the Dallas Business Journal.
Krispy Kreme received $127.4 million for the sales and is expected to be receiving an additional $45 million in the coming weeks after the refinancing of intercompany debt by Insomnia Cookies, according to Krispy Kreme Investor Relations.
The changes that may unfold for Insomnia Cookies as a result of the sale are unclear.
Krispy Kreme President and CEO Josh Charlesworth said in a statement that the transaction will allow the business to focus on its strategy of “producing, selling, and distributing fresh donuts daily,” while also “strengthening” their balance sheet.
Insomnia Cookies Founder Seth Berkowitz will continue his role as CEO.
