Krispy Kreme sells remaining Insomnia Cookie shares
Insomnia Cookies is on track for big expansion under two big investors.
Krispy Kreme has sold its remaining ownership stake in the chain to Verlinvest and Mistral Equity Partners. Last year, the donut giant sold its majority stake to the two investment companies for $127.4 million, but still retained some ownership. (Krispy Kreme acquired Insomnia Cookies in 2018 for $175 million.)
Insomnia Cookies, which hit its 300-store milestone last September, says this most recent transaction launches the brand’s “next phase of growth.” Through its expanded partnership with Verlinvest and Mistral Equity Partners, Insomnia Cookies says it is now on track to open 1,800 locations globally over the next decade.
“We’re excited for this next phase of growth with Verlinvest and Mistral Equity Partners,” said Seth Berkowitz, CEO and founder of Insomnia Cookies. “We’re united by a shared vision: to establish Insomnia as the undisputed leader in the indulgence category. With this support, we’re poised to rapidly scale and deliver more warm, delicious cookies to Insomniacs around the world.”
Founded in 2003 by then-student Seth Berkowitz at the University of Pennsylvania, Insomnia Cookies has since grown to nearly 350 locations across the U.S., Canada and the U.K.
“We believe Insomnia Cookies has all the ingredients to become a global icon in quality indulgence: a visionary founder, a cult-like following, and a clear edge in digital convenience,” said Clément Pointillart, managing director at Verlinvest. “We’re proud to deepen our commitment to Seth and the team as we help take Insomnia across the globe.”
In tandem with the transaction, Insomnia Cookies announced three recent additions to its C-suite:
- Brent Chu, chief financial officer: With an extensive background in consumer goods and retail finance from companies such as PepsiCo, Ferrara Candy Company, and La Colombe, Chu will spearhead Insomnia’s financial growth strategy.
- Katie Seawell, chief marketing officer: A marketing executive with vast experience at top CPG and retail brands such as Starbucks, Seawell will lead brand strategy, customer experience, and go-to-market initiatives as Insomnia enters new markets.
- Stephanie Boughner, chief people officer: Boughner brings expertise in talent development and organizational culture from her experience at Curio Wellness, Aramark, and Talent Solutions TAPFIN, focusing on building a strong foundation for long-term success.
In selling its remaining stakes, Krispy Kreme has received aggregate cash proceeds of $75 million from the transaction, which is expected to be used for debt pay down after transaction-related fees and expenses.
“We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth,” said 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.”
[READ MORE: Krispy Kreme promotes three to C-suite]
