Global doughnut chain Krispy Kreme has completed the sale of its remaining stake in Insomnia Cookies to the cookie company and certain shareholders.
The company has received aggregate cash proceeds of $75m from the transaction, which will allow for debt reduction after covering transaction-related fees and expenses.
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Krispy Kreme CEO Josh Charlesworth stated: “We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth.”
“This is an important step as we focus on our two biggest opportunities: profitable US expansion and capital-light international franchise growth. We wish Insomnia Cookies and their ownership group well as they work to realise the full potential of this unique brand.”
In July 2018, Krispy Kreme acquired a majority stake in the US-based bakery Insomnia Cookies. It was also agreed that both companies will continue to operate independently going forward.
In July 2024, Krispy Kreme divested a majority ownership stake in Insomnia Cookies to investment firms Verlinvest and Mistral Equity Partners, valuing the enterprise at $350m – a significant increase from its value at the time of Krispy Kreme’s initial acquisition.
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By GlobalDataThe sale had brought Krispy Kreme a total of $127.4m, with an additional $45m after Insomnia Cookies’ refinancing of intercompany debt.
Krispy Kreme stated at the time that it planned to use these proceeds to enhance its fresh doughnut business, expand availability and further pay down debt. The doughnut giant would retain a 34% minority shareholding in Insomnia Cookies.
Evercore and Morgan Stanley & Co acted as financial advisors in the transaction in 2024.
In January 2025, Krispy Kreme announced leadership team changes to drive growth and expand its capital-light international franchise model.
