Doughnut retailer Krispy Kreme has secured a management buyout valued at £25 million as it seeks to expand across the UK, it was announced today.
The retailer, which entered the UK in 2003, has 45 stores across the country as well as 350 concessions, is aiming to increase its number of dedicated stores to 80 over the next four years.
Backed by private equity firm Alcuin Capital Partners, the retailer is set to roll out regional offerings, combining the destination experience of its Hotlight stores, which showcase fresh doughnut production, with town centre coffee bars and cabinets.
Existing Joint Managing Directors, Richard Cheshire and Rob Hunt, will be joined by Mark Storey, appointed to the board as chairman by Alcuin, which now owns a majority stake in the business.
This move has significantly increased equity stake in the business for the existing management team, and has enabled the company’s original investors, Chesire and Kent LLC, to realise a return on their investment after launching Krispy Kreme in the UK eight years ago.
In a statement released this morning, Cheshire said that these latest developments will move the brand forward in the future.
“We are delighted to bring Alcuin into the Krispy Kreme family in the UK, and look forward to working with Mark Storey and the team going forward,” he commented.
“Krispy Kreme has expanded rapidly in the UK since we launched in 2003, and our current business plan aims to build on this growth.
“With the support of Alcuin, we plan to achieve this by focusing on our core business of making premium quality doughnuts and coffee, geographically expanding our retail and wholesale operations and providing outstanding career paths for high calibre people.”
Hunt believes that the buyout will serve both company’s well and will help the retailer to focus on further growth.
“When we began looking at the potential for private equity involvement in the business, we were looking for a investor with a like-minded view of the future for Krispy Kreme in the UK,” he explained.
“Alcuin is an ideal partner, with substantial expertise in supporting rapidly growing businesses with strong management teams.
“We look forward to working with the team to deliver the Krispy Kreme experience to more people across the UK over the coming years – via further geographic expansion and by developing our customer experience in existing stores.”