Private investment firm Peak Rock Capital announced Wednesday that it has purchased 85-year-old Shipley Do-Nuts, a franchisor with more than 300 locations in nine states.

Terms of the deal weren’t disclosed. In conjunction with the transaction, President Lawrence Shipley III, a third generation leader, will retire to focus on other family investments. The Shipley family will continue as investors in the company.

“My grandfather, father, and I have dedicated our lives to serving Shipley Do-Nuts, our franchisees and our guests,” Shipley said in a statement. “After an exhaustive search, it became clear that Peak Rock Capital was the ideal steward of our business as it pursues the next stage of growth.”

Shipley Do-Nuts, based in Texas, was founded in 1936 by Lawrence Shipley Sr. amid the Great Depression. At the time, doughnuts were 5 cents per dozen and only sold wholesale. The menu features a variety of doughnuts, kolaches, and rolls.

“Shipley represents an exciting opportunity to invest in a beloved consumer brand with an established reputation for authenticity and quality,” said Robert Strauss, managing director of Peak Rock in a statement. “We are incredibly impressed with the franchise that the Shipley family has built, and we look forward to partnering with the Company’s management team to invest behind their growth plan.  Shipley is deeply committed to continue providing existing franchisee partners with opportunities to grow their business and will actively seek relationships with new partners who are interested in being a part of our growing concept.”

Shipley Do-Nuts is Peak Rock’s 12th investment in the food, beverage, and consumer industry in recent years. Its portfolio includes food manufacturers such as Halo Foods, Turkey Hill, and Pretzels Inc.

Peak Rock defines itself as a middle market private investment firm that supports “senior management to drive rapid growth and profit improvement.”

“This transaction further exemplifies Peak Rock’s deep experience investing in founder and family-owned businesses and highlights our continued interest in attractive investments in the food, beverage, and multi-unit consumer sectors,” said Peak Rock CEO Anthony DiSimone in a statement. “We continue to seek consumer oriented platforms and acquisitions that we believe could benefit from our ability to drive rapid growth and performance improvement.”

Fast Casual, Finance, Story, Shipley Do-Nuts