Peak Rock Capital has sold Shipley Do-Nuts, a franchisor of quick-service donut shops, to Levine Leichtman Capital Partners.
Shipley Do-Nuts is a seller of donuts, kolaches, and coffee with more than 375 franchised and company-owned locations across 14 U.S. states, including Texas, Florida, Georgia, and Tennessee. The company’s products include Shipley’s original glazed donut, sausage and cheese kolaches, and custom-roasted Shipley House Blend Coffee. Houston-headquartered Shipley Do-Nuts was founded in 1936 by Lawrence Shipley Sr. and today is led by CEO Flynn Dekker.
Source: Shipley Do-Nuts
During Peak Rock’s ownership, which began in January 2021, Shipley added a new headquarters and R&D facility in Houston, expanded into new markets like Alabama and Colorado, and achieved 18 consecutive quarters of same-store sales growth.
“We have benefited greatly from our partnership with Peak Rock, and their approach has been key to unlocking Shipley’s impressive growth,” said Mr. Dekker. “We are committed to supporting our franchisees’ businesses and serving our customers the world’s greatest donut as we continue to introduce our iconic brand to more and more communities across the nation.”
“We are proud of the success Shipley has achieved during our ownership and honored to have contributed to the evolution of this iconic brand,” said Robert Strauss, a senior managing director of Peak Rock. “Our investments in people, processes and technology have propelled Shipley to achieve transformational growth. We have deeply appreciated the support of the company’s loyal customers, franchisees, employees, and the Shipley family.”
Source: Shipley Do-Nuts
“It has been an outstanding experience working alongside the Shipley team,” said Michael Graham, a managing director of Peak Rock. “The company has excelled through our investment and built a strong foundation to capitalize on future growth.”
“The Shipley transaction is another great example of Peak Rock’s track record of successfully partnering with family and founder-owned businesses to achieve transformational growth,” said Anthony DiSimone, the chief executive officer of Peak Rock. “Shipley also highlights Peak Rock’s deep expertise supporting franchisors in achieving their growth ambitions. We look forward to continuing to partner with similar businesses in the future that can benefit from our capabilities to achieve transformational outcomes.”
Austin-headquartered Peak Rock Capital makes debt and equity investments of $30 million to $500 million in middle-market companies with enterprise values from $50 million to $1.5 billion. Sectors of interest include business and technology-enabled services; consumer products and services; distribution and logistics; energy; food and beverage; healthcare; and industrial manufacturing and technology.
Levine Leichtman invests in U.S. and Europe-based middle-market companies across industries such as franchising, business services, education and training, engineered products and manufacturing, healthcare, and light manufacturing. Earlier this month, LLCP closed its newest fund, LLCP Fund VII LP, above its target with over $3.6 billion in capital commitments.
Since its founding in 1984 by Arthur Levine and Lauren Leichtman, LLCP has managed $16.3 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. The firm and its affiliates currently manage approximately $12 billion in assets, with offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, The Hague, and Frankfurt.
Peak Rock Capital has sold Shipley Do-Nuts, a franchisor of quick-service donut shops, to Levine Leichtman Capital Partners.
Austin-headquartered 
