• North Point will lead the process
• Shipley generates USD 25m-USD 30m EBITDA
• Should draw interest from sponsors

Peak Rock Capital is exploring a sale of its portfolio company Shipley Do-Nuts, a Houston, Texas-based donut company and coffeehouse chain, according to two sources familiar with the situation.

North Point has been appointed to oversee the potential sale process, which is expected to launch later this year, the sources said.

Shipley Do-Nuts generates between USD 25m to USD 30m in EBITDA, the sources said, with one of them adding that it could fetch an EBITDA multiple in the high teens to low twenties.

The company is likely to draw interest mainly from sponsors, the sources said. One of the sources said that a sponsor like Roark Capital, which invests in franchise restaurants, could potentially be interested in this asset as an add-on acquisition for one of its portfolio companies.

Peak Rock acquired Shipley Do-Nuts in January 2021 for undisclosed terms and has since expanded its brick-and-mortar locations and regional presence. The company now operates over 360 stores in 12 states across the South and Midwest, up from 300 stores in nine states at the time of the acquisition.

When Peak Rock bought Shipley Do-Nuts in January 2021, it was raising capital for its Peak Rock Capital Fund III. The fund closed in April of that year on USD 2bn.

Founded in 1936, Shipley Do-Nuts is a quick-service restaurant franchisor that serves donuts, kolaches and beverages. The third quarter of 2024 marked Shipley’s 15th consecutive quarter of positive sales, according to the company.

Peak Rock and North Point declined to comment. Shipley did not respond to a request for comment.