Financing

Krispy Kreme to buy a majority stake in Insomnia Cookies

The cookie chain will operate as a stand-alone company following the sale.
Insomnia Cookies

Krispy Kreme Doughnut Corp. on Friday said that it has agreed to buy a majority stake in the cookie delivery concept Insomnia Cookies. Terms of the deal were not disclosed.

News that the two were close to a sale emerged Thursday.

Mike Tattersfield, Krispy Kreme’s CEO, called Insomnia a “rapidly growing business with an innovative delivery experience and an exceptional product that is beloved by consumers.”

He said the two brands will continue to operate independently, with Insomnia’s founder Seth Berkowitz continuing to lead the cookie chain.

“My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth,” Berkowitz said in a statement.

The deal is only the latest in a long string of acquisitions engineered by JAB Holding Co., the Luxembourg-based investment firm that took Krispy Kreme private in 2016. JAB has acquired a long list of restaurant chains: Panera Bread, Peet’s Coffee, Caribou Coffee, Bruegger’s Bagels, Einstein Bros. Bagels, Pret A Manger, Intelligentsia Coffee and Stumptown Coffee. That’s in addition to beverage-centric companies Keurig and Dr. Pepper.

Berkowitz founded Insomnia as a student at the University of Pennsylvania in 2003. The chain sells cookies, milk, ice cream and mix-ins. It operates primarily in urban areas and near college campuses, and its locations are open until 3 a.m., with cookies available for delivery.

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