Alcuin Capital partners, the private equity group, which includes Caffe Nero amongst its investments, has backed a £25m management buyout of the UK arm of Krispy Kreme, the doughnut retailer.
The private equity group has backed the 45-strong chain’s current joint managing directors Richard Cheshire and Rob Hunt, in acquiring the business from investment firm Cheshire and Kent.
Alcuin said the deal would help support the chain’s plans to grow to 80 sites in the UK by 2015
As part of the deal Mark Storey, a partner at Alcuin, will join Krispy Kreme UK as chairman, while the management team of Hunt and Cheshire, will take a greater stake in the business.
In June, the group announced plans to double its presence in the UK with the opening of 10 stores a year for the next five years, which will take its estate to nearly 100 by 2016.
The company recently opened a 200sq ft site at Westfield Stratford, and a 1,100sq ft unit at the Southgate scheme in Bath.
It will open an 800sq ft outlet in the Meadowhall shopping centre in Sheffield this month.
In its latest results, the company reported a 1.4% rise in like-for-like same store sales for the 12 months to the end of February, with overall UK sales up 12.6% to £33.4m. Underlying profits rose 23%.