Krispy Kreme announced Monday that it sold a majority ownership stake in Insomnia Cookies.

The doughnut chain handed the ownership stake to Mistral Equity Partners and Verlinvest. The total enterprise value of $350 million is double what is was in 2018 when Krispy Kreme acquired it. The brand will keep a roughly 34 percent minority stake in the business.

Insomnia Cookies ended March 31 with 277 shops nationwide. When Krispy Kreme took a majority stake in the concept, there were 135 units. The company said in February 2023 that Insomnia had room for 4,000 locations worldwide.

CEO Josh Charlesworth said the transaction allows the brand to focus on strengthening the balance sheet and improving its hub-and-spoke model of delivering fresh doughnuts every day to grocers, gas stations, convenience stores, pharmacies, restaurants, and more.

Krispy Kreme received $127.4 million for the sale and expects to get another $45 million in the coming weeks after Insomnia Cookies refinances debt. The company will use the proceeds to build its doughnut delivery business, expand availability, and pay down debt. Krispy Kreme has a deal to distribute doughnuts to McDonald’s restaurants nationwide. Its overall goal is to add 15,000 points of access (places to deliver doughnuts) in the U.S. between now and the end of 2026.

“Following a thorough review, we are confident that Verlinvest and Mistral are the right partners to share in the success of Insomnia Cookies given their food industry experience and long-standing track record of value creation,” Charlesworth said in a statement.

Seth Berkowitz, as a student at the University of Pennsylvania, founded the brand in 2003. The concept was named “Insomnia” because stores stay open until 3 a.m. And they’re typically based near college campuses, catering to a host of young adults pulling all-nighters. Post transaction, Berkowitz will remain as CEO.

Verlinvest is an international family-backed investment company focusing on fast-moving consumer goods, health, consumer technology, and lifestyle categories. Its portfolio includes Oatly, Tony’s Chocolonely, K1 Speed, Vita Coco, and Mutti.

“We are enthusiastic about our investment in Insomnia Cookies, an incredible brand so close to our core DNA and at a pivotal point in its growth trajectory. We’re eager to support Seth and help unlock the full potential of the business both in the U.S. and internationally,” Clément Pointillart, Verlinvest managing director, said in a statement.

Mistrial Equity Partners is a New York City–based private equity firm that typically invests in North American companies with enterprise values between $100 million and $300 million. Past investments include Jamba, Lovesac, OneSpaWorld, Biote, ARKO, Vino Volo, and Shearer’s Foods.

“We are excited to partner with the company through the next phase of its growth. Having known Seth since 2004, we are delighted to have the opportunity to work with him again as well as the best-in-class teams at Krispy Kreme and Verlinvest,” Mistrial Equity Partners CEO Andrew Heyer said in a statement.

Finance, Growth, Story, Insomnia Cookies, Krispy Kreme