Levine Leichtman Capital Partners Expands Portfolio with Shipley
Levine Leichtman Capital Partners Acquires Shipley Do-Nuts
Levine Leichtman Capital Partners (LLCP), a dynamic middle-market private equity firm, has recently embarked on an exciting venture by partnering with management to acquire Shipley Do-Nuts, an esteemed name in the donut industry. This acquisition marks a significant moment for LLCP, emphasizing their commitment to growth in the franchising sector. While the financial terms have not been disclosed, this strategic move is expected to pave the way for new opportunities for both LLCP and Shipley.
About Shipley Do-Nuts
Shipley Do-Nuts, based in Houston, stands as the largest donut and kolache brand in the United States. With a rich history of nearly 90 years, Shipley has earned a stellar reputation for its handcrafted donuts, fresh daily kolaches, and excellent coffee, found at over 375 locations across 14 states. Offering more than 60 varieties, their dedication to quality and customer service has made them a beloved brand amongst donut enthusiasts.
Leadership and Management Team
The current executive team, headed by CEO Flynn Dekker, will continue to steer Shipley from its headquarters in Houston. Flynn, together with his dedicated management team, has been executing a successful growth plan that LLCP aims to enhance further. According to Matthew Frankel, Managing Partner at LLCP, this partnership is a testament to their commitment to expanding the business and driving exceptional same-store sales growth. This kind of enthusiasm for growth aligns perfectly with LLCP's objectives and operational philosophy.
Growth Aspirations and Future Goals
In an optimistic tone, Dekker expressed the excitement surrounding this collaboration with LLCP, highlighting the vast potential to accelerate Shipley Do-Nuts' growth trajectory. He noted that with LLCP's expertise in the franchise food industry, they are well-positioned to not only expand their reach but also maintain the brand's long-standing commitment to quality. LLCP's track record in fostering franchise growth, paired with Shipley’s rich heritage of quality products, creates a promising future.
Investment Strategy of LLCP
Shipley represents LLCP’s 18th franchising investment, showcasing their deep experience in this field, including prior successful partnerships with brands like Tropical Smoothie Cafe and Nothing Bundt Cakes. LLCP's structured private equity investment strategy combines debt and equity, providing tailored growth capital to its portfolio companies. This innovative approach allows for greater flexibility and can be distinctly advantageous compared to conventional private equity strategies.
Expertise in the Franchising Sector
LLCP's expansive expertise and established reputation in the franchising sector equips them with the insights and strategies necessary to nurture Shipley’s continued growth. As the company increases its footprint across new markets, LLCP aims to leverage its extensive industry knowledge to ensure sustained success.
Commitment to Quality and Customer Service
Shipley Do-Nuts prides itself on the fresh quality of its products as well as its commitment to exceptional customer service. These core values are likely to remain at the forefront as LLCP’s strategic vision unfolds. By blending these foundational principles with innovative growth strategies, Shipley and LLCP aim to reach a new height in the marketplace, delivering their iconic donuts to a larger audience.
Frequently Asked Questions
What led Levine Leichtman Capital Partners to acquire Shipley Do-Nuts?
LLCP recognized the opportunity to enhance growth and expand Shipley's market presence, leveraging their experience in the franchising sector.
How many locations does Shipley Do-Nuts have?
Shipley Do-Nuts operates over 375 locations across 14 states, making it the largest brand in its category.
Who is leading Shipley Do-Nuts after the acquisition?
Shipley Do-Nuts will continue to be led by CEO Flynn Dekker and his existing executive team following the acquisition.
What is LLCP's investment strategy?
LLCP employs a structured private equity strategy that allows for a combination of debt and equity investments, providing flexible growth capital to its portfolio companies.
What is Shipley Do-Nuts known for?
Shipley Do-Nuts is renowned for its handcrafted donuts and kolaches, offering an impressive variety while maintaining a strong commitment to quality and customer service.
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