An affiliate of Peak Rock Capital, a middle-market private equity firm, announced the sale of Shipley Do-Nuts to Levine Leichtman Capital Partners. Houston-based Shipley is a franchisor of a doughnut, kolache, and coffee shop brand, with more than 375 stores across 14 states. 

Since acquiring Shipley from the third generation of the founding family, Peak Rock has supported the company's strategic growth and operational initiatives, including expanding in multiple geographies, developing new products, launching a marketing cooperative with franchisees, and developing a new corporate headquarters and R&D lab, it says. Under Peak Rock's ownership, same-store-sales grew for 18 consecutive quarters and the company set records for new store growth.

Robert Strauss, senior managing director of Peak Rock, said, "We are proud of the success Shipley has achieved during our ownership and honored to have contributed to the evolution of this iconic brand. Our investments in people, processes and technology have propelled Shipley to achieve transformational growth. We have deeply appreciated the support of [the] company's loyal customers, franchisees, employees, and the Shipley family."

Michael Graham, managing director of Peak Rock, adds, "It has been an outstanding experience working alongside the Shipley team. The Company has excelled through our investment and built a strong foundation to capitalize on future growth."

Shipley CEO Flynn Dekker says, "We have benefited greatly from our partnership with Peak Rock, and their approach has been key to unlocking Shipley's impressive growth. We are committed to supporting our franchisees' businesses and serving our customers the world's greatest donut as we continue to introduce our iconic brand to more and more communities across the nation." 

Anthony DiSimone, CEO, Peak Rock, said, "The Shipley transaction is another great example of Peak Rock's track record of successfully partnering with family and founder-owned businesses to achieve transformational growth. Shipley also highlights Peak Rock's deep expertise supporting franchisors in achieving their growth ambitions. We look forward to continuing to partner with similar businesses in the future that can benefit from our capabilities to achieve transformational outcomes."

North Point and JPMorgan acted as financial advisors and Kirkland & Ellis LLP acted as the legal advisor to the company on the transaction.

Related: Shipley Do-Nuts inks agreement to expand