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Financing

Roark Capital buys Nothing Bundt Cakes

The private equity firm acquired the 390-unit bakery chain from Levine Leichtman Capital Partners.
Nothing Bundt Cakes sold
Photograph: Shutterstock

Roark Capital has acquired the 390-unit bakery chain Nothing Bundt Cakes from Levine Leichtman Capital Partners, the two private equity firms said on Friday.

Terms of the deal were not disclosed.

Nothing Bundt Cakes, or NBC, has more than doubled in size since Levine Leichtman bought the firm in 2016, when the chain had 175 locations. The chain generates $470 million in system sales in the U.S. and Canada.

Debbie Shwetz and Dena Tripp founded NBC in 1997. The chain is headquartered in Addison, Tex. It is known for its Bundt cakes made on site, ranging in size from bite-sized “Bundtinis" to tiered Bundt cakes that serve 26.

The niche bakery shop is largely franchised, which is one of Roark Capital’s primary specialties. In addition to numerous restaurant chains—including Dunkin’ owner Inspire Brands, Cinnabon owner Focus Brands and CKE Restaurants—the private equity firm also owns a number of non-restaurant franchises. It recently acquired the cleaning services company ServiceMaster Brands, for instance.  It is also a major investor in The Cheesecake Factory.

This is the 29th restaurant investment for Roark. Kyle Smith, CEO of Nothing Bundt Cakes, called Roark a “best-in-class partner that shares our values of transparency and excellence and has a deep expertise with its incredible portfolio of brands.”

Clay Harmon, managing director with Roark, said that NBC is “a special brand with delicious products that are beloved by guests” and that the firm has “great admiration for what Kyle and his team have accomplished.”

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