Private equity firm Levine Leichtman Capital Partners acquires Shipley Do-Nuts from previous owner Peak Rock Capital.
Shipley Do-Nuts Sold to Levine Leichtman Capital Partners
Shipley Do-Nuts, the nation's largest donut and kolache brand, has been acquired by Levine Leichtman Capital Partners (LLCP), a California-based middle-market private equity firm. The transaction, which took place in July 2025, marks LLCP's 18th franchising investment and includes 32 brands across various industries.
Founded in 1936 by Lawrence Shipley Sr. in Houston, Texas, Shipley Do-Nuts began as a small stand selling glazed doughnuts based on a family recipe. Over nearly 90 years, the company expanded into the major multi-state doughnut chain it is today, with over 375 locations across 14 states by 2025.
Peak Rock Capital, an Austin-based investment firm, acquired Shipley in 2021 when the brand had more than 300 locations in nine states. Under Peak Rock's ownership, Shipley experienced transformational growth, including 18 consecutive quarters of same-store sales increases and expansion into additional states with hundreds of new locations planned.
The partnership between Shipley Do-Nuts and LLCP is not the first for LLCP in the franchising industry. The firm has previously invested in Tropical Smoothie Cafe, Nothing Bundt Cakes, and Hand & Stone. LLCP's extensive expertise in franchise food brands will be crucial in driving future growth and supporting Shipley's franchisees.
Flynn Dekker, CEO of Shipley Do-Nuts, is proud of the brand's success during Peak Rock Capital's ownership and appreciates the support received from customers, franchisees, employees, and the Shipley family. He looks forward to continuing to grow the brand under LLCP's guidance, focusing on expanding product mix and beverage offerings.
The financial terms of the transaction were not disclosed. Kirkland & Ellis and DLA Piper served as legal counsel to LLCP on the transaction.
Michael Graham, Managing Director of Peak Rock, highlights Peak Rock's success in partnering with family and founder-owned businesses to achieve growth. He praises the Shipley team for their achievements during their investment. Anthony DiSimone, CEO of Peak Rock, emphasizes Peak Rock's deep expertise in supporting franchisors and looks forward to partnering with similar businesses in the future.
The Shipley transaction is another example of Peak Rock's track record of successful partnerships with businesses to achieve transformational growth. Shipley Do-Nuts will continue to be run from its Houston headquarters by the existing executive team led by CEO Flynn Dekker. Greg Flaster, Managing Director at LLCP, expresses optimism about accelerating Shipley Do-Nuts' growth and expanding its reach.
[1] Shipley Do-Nuts press release, July 2025. [2] Shipley Do-Nuts website. [3] Peak Rock Capital press release, July 2025. [4] QSR Magazine, July 2025.
- The financial industry witnessed Levine Leichtman Capital Partners (LLCP) taking a significant step in the business world by investing in the private equity sector, specifically acquiring Shipley Do-Nuts – a prominent doughnut and kolache brand – marking the firm's eighteenth franchising investment in July 2025.
- As Shipley Do-Nuts proceeds with its new partnership with LLCP, the company will leverage LLCP's expertise in technology, finance, and investing across multiple industries to continue expanding its product mix and beverage offerings, ensuring future growth in the competitive food franchising market.
