Texas' iconic Shipley Do-Nuts has a new owner. The Austin-based private equity firm Peak Rock Capital announced it has purchased the company from the Houston-based Shipley family. Terms of the deal were not disclosed.
Known for its doughnuts and kolaches, the company has over 300 locations in nine states, including seven in Austin. The acquisition will allow the company to grow with both its existing franchisees and to 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 an exhaustive search, it became clear that Peak Rock Capital was the ideal steward of our business as it pursues the next stage of growth," Lawrence Shipley III said in a statement. "My family is thrilled to continue as investors in the Company, and we look forward to the exciting growth to come."
With the completion of the purchase, Shipley has retired from his position as president of the company. He will focus on other family investments, according to a release.
"Shipley represents an exciting opportunity to invest in a beloved consumer brand with an established reputation for authenticity and quality," Peak Rock managing director Robert Strauss added. "We are incredibly impressed with the franchise that the Shipley family has built, and we look forward to partnering with the Company's management team to invest behind their growth plan."
Peak Rock Capital is an Austin-based "middle-market private investment firm" with investments in various businesses in both the U.S. and Europe. Its other holdings include snack foods maker Halo Foods Ltd. and Turkey Hill, a company that makes ice cream and refrigerated drinks.
Shipley Do-Nuts is the latest Texas brand acquired by a private equity firm. In November, Torchy's Tacos announced it has received a $400 million investment that will allow it to expand to 10 more states over the next four years. Chicago’s BDT Capital Partners acquired a majority stake in Whataburger in 2019 with plans to expand the brand.