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Krispy Kreme sells majority of Insomnia Cookies to Verlinvest and Mistral Equity Partners for $172.4 millionKrispy Kreme sells majority of Insomnia Cookies to Verlinvest and Mistral Equity Partners for $172.4 million

The doughnut chain will use the funds to expand its footprint and pay down debt

Bret Thorn, Senior Food Editor

July 22, 2024

2 Min Read
insomnia cookies
Krispy Kreme bought Insomnia Cookies in 2018, and since then Insomnia’s revenue has tripled.Insomnia Cookies

Krispy Kreme has sold its majority stake in Insomnia Cookies to private equity firms Verlinvest and Mistral Equity Partners, the doughnut chain announced Monday. It will remain a minority shareholder, retaining around 34% of the cookie company.

Krispy Kreme received $127.4 million for the sale and expects an additional $45 million in the coming weeks as Insomnia Cookies’ debt is refinanced, for a total of $172.4 million.

The transaction closed on July 17.

The move isn’t exactly a surprise: Krispy Kreme said last October that it was considering “strategic alternatives” for Insomnia Cookies, including a sale.

Krispy Kreme bought Insomnia Cookies in 2018, and since then Insomnia’s revenue has tripled. The sale puts its enterprise value at $350 million, double what it was when Krispy Kreme bought it.

The doughnut chain, a subsidiary of JAB Holdings, said it would use the proceeds of the sale to pay down debt as well as expand.

Verlinvest has financial interest in a variety of food & beverage companies including oat milk brand Oatly, coconut water brand Vita Coco, liquor companies Rémy Cointreau and Leblon, açaí company Sambazon, and condiment producer Sir Kensington’s.

Mistral is an investor in restaurant brands El Pollo Loco, Jamba, and Vino Volo as well as a Tampa franchisee of Dunkin’ and Baskin-Robbins, plus food manufacturers and the supermarket chain Safeway.

Related:Krispy Kreme could sell Insomnia Cookies soon

Krispy Kreme president and CEO Josh Charlesworth said in a press release announcing the sale that it would benefit both his company and Insomnia.

“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,” he said. 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.”

Insomnia Cookies founder and CEO Seth Berkowitz said he was pleased with the sale, too.

“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.”

Krispy Kreme said it would update its full year 2024 guidance at its upcoming second-quarter earnings call on Aug 8.  

Contact Bret Thorn at [email protected] 

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About the Author

Bret Thorn

Senior Food Editor, Nation's Restaurant News

Senior Food & Beverage Editor

Bret Thorn is senior food & beverage editor for Nation’s Restaurant News and Restaurant Hospitality for Informa’s Restaurants and Food Group, with responsibility for spotting and reporting on food and beverage trends across the country for both publications as well as guiding overall F&B coverage. 

He is the host of a podcast, In the Kitchen with Bret Thorn, which features interviews with chefs, food & beverage authorities and other experts in foodservice operations.

From 2005 to 2008 he also wrote the Kitchen Dish column for The New York Sun, covering restaurant openings and chefs’ career moves in New York City.

He joined Nation’s Restaurant News in 1999 after spending about five years in Thailand, where he wrote articles about business, banking and finance as well as restaurant reviews and food columns for Manager magazine and Asia Times newspaper. He joined Restaurant Hospitality’s staff in 2016 while retaining his position at NRN. 

A magna cum laude graduate of Tufts University in Medford, Mass., with a bachelor’s degree in history, and a member of Phi Beta Kappa, Thorn also studied traditional French cooking at Le Cordon Bleu Ecole de Cuisine in Paris. He spent his junior year of college in China, studying Chinese language, history and culture for a semester each at Nanjing University and Beijing University. While in Beijing, he also worked for ABC News during the protests and ultimate crackdown in and around Tiananmen Square in 1989.

Thorn’s monthly column in Nation’s Restaurant News won the 2006 Jesse H. Neal National Business Journalism Award for best staff-written editorial or opinion column.

He served as president of the International Foodservice Editorial Council, or IFEC, in 2005.

Thorn wrote the entry on comfort food in the Oxford Encyclopedia of Food and Drink in America, 2nd edition, published in 2012. He also wrote a history of plated desserts for the Oxford Companion to Sugar and Sweets, published in 2015.

He was inducted into the Disciples d’Escoffier in 2014.

A Colorado native originally from Denver, Thorn lives in Brooklyn, N.Y.

Bret Thorn’s areas of expertise include food and beverage trends in restaurants, French cuisine, the cuisines of Asia in general and Thailand in particular, restaurant operations and service trends. 

Bret Thorn’s Experience: 

Nation’s Restaurant News, food & beverage editor, 1999-Present
New York Sun, columnist, 2005-2008 
Asia Times, sub editor, 1995-1997
Manager magazine, senior editor and restaurant critic, 1992-1997
ABC News, runner, May-July, 1989

Education:
Tufts University, BA in history, 1990
Peking University, studied Chinese language, spring, 1989
Nanjing University, studied Chinese language and culture, fall, 1988 
Le Cordon Bleu Ecole de Cuisine, Cértificat Elémentaire, 1986

Email: [email protected]

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