Peak Rock Capital Successfully Enhances Shipley Do-Nuts Growth

Peak Rock Capital's Journey with Shipley Do-Nuts

Shipley Do-Nuts, known for its delicious donuts, kolaches, and coffee, has seen a remarkable transformation, especially during its time under the stewardship of Peak Rock Capital. With over 375 locations across numerous states, Shipley is a beloved brand with nearly nine decades of history. The recent sale of Shipley to Levine Leichtman Capital Partners marks a significant milestone in the franchise's journey.

A New Era for Shipley Do-Nuts

The affiliate of Peak Rock Capital, a reputable middle-market private equity firm, announced the successful sale of Shipley Do-Nuts. This strategic decision comes after a period marked by impressive growth in sales and a rapid expansion of new units under Peak Rock's ownership. With a commitment to revitalizing the brand, the firm has implemented numerous strategic initiatives.

Significant Sales Growth

Under Peak Rock’s guidance, Shipley Do-Nuts experienced a significant surge in systemwide sales, more than doubling since the acquisition. This achievement reflects the effectiveness of the operational strategies employed to increase store traffic and customer loyalty during Peak Rock's tenure.

Strategic Expansion Initiatives

Since its acquisition of Shipley, Peak Rock has been at the forefront of numerous development initiatives. These efforts include the expansion into new geographic markets, development of innovative products, and the establishment of a marketing cooperative that aligns the interests of franchisees with corporate strategies. By building a new corporate headquarters and research and development lab, Peak Rock has set the stage for ongoing growth and innovation.

Leadership Insights

Robert Strauss, Senior Managing Director at Peak Rock, expressed his pride in the accomplishments achieved during their ownership. He emphasized how the investments made in people, processes, and technology were pivotal in driving Shipley’s transformational growth. The support from loyal customers, franchisees, and employees further contributed to these successes.

Collaborative Growth Experience

Michael Graham, Managing Director at Peak Rock, reflected positively on the collaboration with the Shipley team. He highlighted how their collective efforts laid a robust foundation, enabling Shipley to look forward with optimism toward future growth prospects.

Commitment to Franchisees and Customers

Flynn Dekker, the CEO of Shipley Do-Nuts, articulated the positive impact of the partnership with Peak Rock. The approach taken by Peak Rock unlocked significant potential, allowing Shipley to not just support its franchisees but also to enhance customer satisfaction. The focus remains on delivering the iconic donuts that have delighted generations.

Future Prospects

Anthony DiSimone, CEO of Peak Rock, noted the significance of the transaction as a testament to their successful partnership with family-owned businesses. Shipley exemplifies Peak Rock’s dedication to facilitating growth among franchisors and reflects their capability to support businesses in realizing their full potential.

Advisory Team

North Point and JPMorgan served as financial advisors during this transaction, while Kirkland & Ellis LLP provided legal advisory services. Their expertise contributed significantly to ensuring a smooth and efficient sale process.

About Shipley Do-Nuts

Founded in 1936, Shipley Do-Nuts is one of the oldest and largest donut brands in the United States. The franchise continues to serve its renowned donuts, coffee, and kolaches to a broad audience. Shipley remains committed to delighting its customers with quality products and expanding its reach across various communities.

About Peak Rock Capital

Peak Rock Capital is a leading middle-market private investment firm focused on making significant equity and debt investments. The firm aims to partner with senior management teams to drive performance and enhance growth. With its diverse platforms in credit and real estate, Peak Rock is well-positioned to cater to the capital requirements of middle-market and growth-oriented businesses.

Frequently Asked Questions

What was the strategic vision behind Peak Rock's investment in Shipley Do-Nuts?

Peak Rock aimed to revitalize Shipley by implementing operational improvements, expanding market reach, and fostering innovation within the brand.

How did Shipley Do-Nuts perform financially during Peak Rock's ownership?

Shipley experienced significant growth, more than doubling systemwide sales and achieving record new store openings over 18 consecutive quarters.

What role did the leadership of Peak Rock play in Shipley's development?

The leadership team made critical investments in people, processes, and technology, which were essential in driving Shipley’s transformational growth.

How does Shipley Do-Nuts plan to continue its growth post-sale?

With a commitment to innovation and customer satisfaction, Shipley aims to introduce its brand to more communities while supporting existing franchisees.

Who were the advisors involved in the Shipley transaction?

North Point and JPMorgan acted as financial advisors, and Kirkland & Ellis LLP provided legal advisory services to ensure a smooth transaction.

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