The owners of Krispy Kreme UK have abandoned a planned £200m flotation of the business and instead agreed a deal to sell it to US parent brand owner Krispy Kreme Group.
Private equity firm Alcuin Capital Partners Private controls the UK operations of the Krispy Kreme brand. After entering the country in 2003, it has grown rapidly with 50 stores now operating alongside around 1,000 concessions in supermarkets and service stations across the country.
The sale of the £50m-turnover business is expected to be completed by the end of the month with the company saying that it will continue to operate as normal. All staff and management will also be retained. The company added that it will pursue its current business strategy which is focused on delivering profitable growth through the opening of new retail stores and self-serve cabinets across the UK and Republic of Ireland and driving core sales growth across the existing estate.
Mike Dowell, chief executive of Krispy Kreme UK, said: “Today’s announcement is very exciting for our business and all of our people. Krispy Kreme Group has been very supportive of our progress and growth over recent years and we look forward to working more closely with them as we continue to grow the brand in the UK and Ireland.”
Tony Thompson, chief executive at Krispy Kreme Group, said: “We are excited to be able to partner directly with the existing management team and staff to deliver the next chapters of growth in the UK and Ireland. The existing team has done a tremendous job building the business over the past 14 years and we look forward to continuing to share the joy that is Krispy Kreme with their expertise. We support the management team’s vision and strategy and will work together with them building on our Krispy Kreme culture, values and commitment to our customers and guests.”