Six years after originally acquiring a majority ownership stake in Insomnia Cookies, Krispy Kreme, Inc. has announced the sale of that majority stake to Verlinvest and Mistral Equity Partners. The transaction represents a $350 million total enterprise value, which has doubled since 2018.

“As we build a bigger and better Krispy Kreme, this transaction allows us to focus on our core strategy of producing, selling, and distributing fresh doughnuts daily while also further strengthening our balance sheet,” says Josh Charlesworth, Krispy Kreme president and chief executive officer. “Following a thorough review, we are confident that Verlinvest and Mistral are the right partners to share in the success of Insomnia Cookies given their food industry experience and long-standing track record of value creation.”

The transaction closed on July 17, 2024, with Krispy Kreme receiving $127.4 million for the sale and expecting to receive an additional $45 million in the coming weeks following an Insomnia Cookies refinancing of intercompany debt. The company intends to use the proceeds to further strengthen its fresh doughnut business and expand availability, as well as pay down debt. It will remain as an approximately 34 percent minority shareholder in Insomnia Cookies.

“Building off of a very successful five-year partnership with Krispy Kreme, we’re thrilled to welcome Verlinvest and Mistral to this new chapter of our journey,” says Insomnia Cookies founder Seth Berkowitz, who will continue in his role as chief executive officer.