Bakery franchise chain Crumbl explores $2 billion sale, sources say

By Abigail Summerville

NEW YORK (Reuters) – The homeowners of Crumbl are exploring a sale that would worth the favored cookie chain at practically $2 billion, together with debt, in keeping with folks accustomed to the matter.

The Lindon, Utah-based bakery franchise chain is working with funding financial institution North Level on a sale course of that would appeal to curiosity from personal fairness companies, the sources mentioned, requesting anonymity because the matter is confidential.

The homeowners of the cookie chain are hoping to command a valuation for the enterprise equal to greater than 10 occasions its annual earnings earlier than curiosity, taxes, depreciation, and amortization of practically $150 million, the sources mentioned.

Crumbl and North Level didn’t instantly reply to requests for remark.

Launched in 2017 by cousins Jason McGowan and Sawyer Hemsley, Crumbl lately has amassed a large social media following throughout platforms resembling TikTok, Instagram, and YouTube.

The corporate, which sells its cookies in a particular pink field with its brand, opened its first location in 2017 in Logan, Utah, when Hemsley was ending his diploma at Utah State College. Crumbl is now current in 1,071 places throughout North America, in keeping with its web site.

The dessert chain’s transfer to discover a sale comes as massive funding companies are actively buying franchise operators, which generally generate regular royalty charges and are cheaper to function.

Final yr, Verlinvest and Mistral Fairness Companions acquired Insomnia Cookies from Krispy Kreme (NASDAQ:DNUT) in a deal value $350 million.

In December, Reuters reported personal fairness agency Bain Capital is in talks to amass restaurant franchise operator Scorching Platter.