Peak Rock Capital has acquired sister companies Shipley Franchise Company and Shipley Do-nut Flour & Supply Co. (together “Shipley”).
Shipley is a quick-service restaurant franchisor that sells more than sixty varieties of donuts, kolaches (a “pig in a blanket” breakfast sandwich), and beverages including coffee, hot chocolate, and fruit juices.
Houston-based Shipley’s was founded in 1936 by Lawrence Shipley and today has more than 300 company-owned and franchised restaurants across ten states including Texas, Oklahoma, Louisiana, Arkansas, Tennessee, Mississippi, Georgia, Florida, Alabama, and Colorado.
Generations of Shipley family members have led the business including Lawrence Shipley Jr. (son of the founder) and Lawrence Shipley III (grandson of the founder).
“My grandfather, father, and I have dedicated our lives to serving Shipley Do-Nuts, our franchisees and our guests,” said Mr. Shipley. “After an exhaustive search, it became clear that Peak Rock 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.” With the closing of this transaction, Mr. Shipley has retired from the company to focus on other family investments.
“Shipley represents an exciting opportunity to invest in a beloved consumer brand with an established reputation for authenticity and quality,” said Robert Strauss, a managing director at 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.”
The buy of Shipley is Peak Rock’s twelfth investment in the food, beverage and consumer industry in recent years. In September 2020, the firm acquired Halo Foods, a UK-based maker of cereal, fruit, and nut bars, from Nimbus, a Dutch private equity firm. In June 2020, after a three-year hold, Peak Rock exited its investment in Gold Coast Bakeries, a California-based maker of specialty and organic breads, buns, and rolls.
“Our acquisition of Shipley’s 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,” said Anthony DiSimone, the chief executive officer of Peak Rock. “We continue to seek consumer-oriented platforms and acquisitions that we believe could benefit from our ability to drive rapid growth and performance improvement.”
Austin-based Peak Rock makes debt and equity investments of $30 million to $300 million in middle-market companies with revenues from $50 million to $1 billion and enterprise values from $50 million to $750 million. Sectors of interest include business and technology-enabled services; consumer products and services; distribution and logistics; energy; food and beverage; healthcare; industrial manufacturing; metals; and technology.
© 2021 Private Equity Professional | January 8, 2021
