An affiliate of private investment firm Peak Rock Capital has completed the acquisition of Shipley Franchise Company and Shipley Do-nut Flour & Supply Co. (Shipley Do-Nuts). Financial terms of the transaction were not disclosed.

Founded in 1936, Houston-based Shipley Do-Nuts is a quick-service restaurant franchisor offering donuts, kolaches and beverages. The company has more than 300 locations spanning nine states, and since the late 2010s it has experienced a period of rapid expansion, debuting locations in Colorado, Florida and Oklahoma in 2018.

“My grandfather, father and I have dedicated our lives to serving Shipley Do-Nuts, our franchisees and our guests,” says Lawrence Shipley III, who has retired from the company after many years as president to focus on other family investments. “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. My family is thrilled to continue as investors in the company, and we look forward to the exciting growth to come.”

The acquisition of Shipley Do-Nuts represents Peak Rock’s twelfth investment in the food and beverage industry in recent years. Other companies in Peak Rock’s portfolio include Halo Foods Ltd., Turkey Hill, Pretzels Inc., Louisiana Fish Fry, TNT Crust, Diamond Crystal Brands, Berner Food & Beverage and Natural American Foods.

“Shipley represents an exciting opportunity to invest in a beloved consumer brand with an established reputation for authenticity and quality,” says Robert Strauss, managing director of Peak Rock. “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. Shipley is deeply committed to continue providing existing franchisee partners with opportunities to grow their business and will actively seek relationships with new partners who are interested in being a part of our growing concept.”

Anthony DiSimone, chief executive officer of Peak Rock, adds, “This transaction further exemplifies Peak Rock’s deep experience investing in founder and family-owned businesses and highlights our continued interest in attractive investments in the food, beverage and multi-unit consumer sectors. We continue to seek consumer-oriented platforms and acquisitions that we believe could benefit from our ability to drive rapid growth and performance improvement.”