Private Equity Firm Levine Leichtman Capital Acquires Shipley Do-Nuts from Peak Rock Capital
Levine Leichtman Capital Partners (LLCP) has announced its acquisition of Shipley Do-Nuts, a renowned franchise food brand specialising in donuts and kolaches. The deal, which marks the fourth platform investment of LLCP VII, L.P., is set to drive future growth for the brand and support franchisees.
Shipley Do-Nuts, acquired by LLCP in 2025, is pursuing an aggressive growth strategy. The strategy includes rapid unit expansion, digital innovation, operational improvements, and marketing modernization. The brand has been performing exceptionally well, achieving 18 consecutive quarters of positive same-store sales growth and planning to open over 40 new locations in 2025, with more than 200 units currently in development.
Expansion and Growth
Shipley is expanding its footprint into new states—recently entering Virginia and Missouri—and aims to surpass 600 locations by 2030. In 2025 alone, it targets opening 40+ new shops, which would be more than 10% unit growth, on top of 23 openings in 2024.
Franchise Growth and Satisfaction
With over 375 franchised and company-owned locations operating across 14 states, franchisee profitability has improved significantly post-2023. 85% of franchisees report better margins due to cost efficiencies and digital tools.
Digital and Marketing Innovation
Since CEO Flynn Dekker’s arrival, Shipley has tripled its digital sales mix by integrating third-party apps for ordering, launching a loyalty program, and establishing its first marketing co-op to fund advertising and new product launches, which boosted rewards program signups substantially.
Operational Excellence
The brand’s average unit volume (AUV) growth of 12% annually since 2021 exceeds the quick-service restaurant (QSR) sector average of 5%. Investments in supply chain scale and unified fleet management support streamlined updates and limited-time offers.
Private Equity Role and Risk Management
LLCP, known for disciplined growth and experience with successful food brands, uses a structured private equity model blending equity and debt to fund Shipley’s expansion. The firm helps navigate sector challenges like rising ingredient costs and labor shortages with operational rigor.
Legacy and Leadership Stability
Despite new ownership, Shipley maintains stable leadership under CEO Flynn Dekker and continues leveraging past infrastructure investments made under Peak Rock Capital, such as a new HQ and R&D center in Houston.
With this partnership, Shipley Do-Nuts is poised for continued success in the fragmented $12 billion donut and coffee market. The brand offers over 60 varieties of donuts and kolaches and has built a strong reputation for providing high-quality products and exceptional customer service.
The Shipley transaction is an example of Peak Rock's track record of success in partnering with businesses. Anthony DiSimone, CEO of Peak Rock, looks forward to partnering with similar businesses in the future that can benefit from Peak Rock's capabilities.
Shipley represents LLCP’s 18th franchising investment, encompassing a combined 32 brands across various industries. The company will continue to be run from its Houston headquarters by the existing executive team led by CEO Flynn Dekker.
Michael Graham, Managing Director of Peak Rock, highlighted Peak Rock's success in partnering with family and founder-owned businesses to achieve transformational growth. Robert Strauss, Senior Managing Director of Peak Rock, appreciated the experience of working alongside the Shipley team.
Kirkland & Ellis and DLA Piper served as legal counsel to LLCP on the transaction. Shipley was advised by North Point and J.P. Morgan. Greg Flaster, Managing Director at LLCP, expressed optimism about Shipley’s growth potential with the partnership. Flynn Dekker, CEO of Shipley, is proud of the success achieved during the company’s ownership and appreciates the support of customers, franchisees, employees, and the Shipley family.
- With the acquisition by Levine Leichtman Capital Partners (LLCP), Shipley Do-Nuts is not only expanding its business through digital innovation and unit growth but also seeking support in financial investments for its future development, given the private equity roles of firms like LLCP in the finance and investing scene.
- The strategic partnership between Shipley Do-Nuts and Levine Leichtman Capital Partners (LLCP) aims to utilize technology to enhance the brand's online presence, innovative marketing strategies, and operational excellence, contributing to its continued growth and success in the competitive $12 billion donut and coffee market.
