Peak Rock Sells Shipley Do-Nuts to Levine Leichtman for Undisclosed Sum

Peak Rock Capital has sold Shipley Do-Nuts, a 375-unit doughnut chain, to Levine Leichtman Capital Partners. Peak Rock acquired Shipley in 2021 and achieved significant unit count expansion and 18 consecutive quarters of same-store sales growth. Levine Leichtman has a track record of growing its restaurant brands and spinning them off on favorable terms. Shipley plans to open over 40 units this year and has a pipeline of over 200 units.

Peak Rock Capital has sold Shipley Do-Nuts, a 375-unit doughnut chain, to Levine Leichtman Capital Partners. The acquisition follows significant growth under Peak Rock's ownership, which included 18 consecutive quarters of same-store sales growth and a substantial increase in unit count [1].

Shipley Do-Nuts, founded in 1936, is known for its kolaches and variety of glazed donuts. The company expanded from its Houston roots to operate in 14 states, with a focus on franchising. Under Peak Rock's management, the brand achieved robust growth, with plans to open over 40 units this year and a pipeline of over 200 units [2].

Levine Leichtman Capital Partners has a history of growing and spinning off restaurant brands on favorable terms. Their portfolio includes brands such as Tropical Smoothie Cafe and Nothing Bundt Cakes. The firm's managing partner, Matthew Frankel, expressed excitement about the partnership with Shipley's management team, noting the potential for further expansion and growth [3].

The acquisition of Shipley Do-Nuts is part of a broader trend in the restaurant industry, with several high-profile deals and mergers in recent months. This includes the acquisition of Brix Holdings by a franchisee of its flagship brand Friendly's, and the sale of Old Chicago Pizza by SPB Hospitality [4].

References:

[1] Restaurant Business Online. "Private-equity firm acquires Shipley Do-Nuts." https://restaurantbusinessonline.com/financing/private-equity-firm-acquires-shipley-do-nuts
[2] Yahoo Finance. "Levine Leichtman Capital Partners Acquires Shipley Do-Nuts." https://finance.yahoo.com/news/levine-leichtman-capital-partners-acquires-091942256.html
[3] Restaurant Dive. "Shipley Do-Nuts Levine Leichtman Acquisition." https://www.restaurantdive.com/news/shipley-do-nuts-levine-leichtman-acquisition/754198/
[4] Spectrum Local News. "Shipley Donuts California Private Equity Firm Acquisition." https://spectrumlocalnews.com/tx/san-antonio/news/2025/07/29/shipley-donuts-california-private-equity-firm-acquisition