(Bloomberg) -- Krispy Kreme Inc. is weighing an all-cash sale of Insomnia Cookies to focus on its core doughnut business.
The Charlotte, North Carolina-based company bought a majority stake in the cookie purveyor in 2018 to build out the doughnut factory’s e-commerce operations. Insomnia made its name with late-night snack delivery to college students. Krispy Kreme also wanted to help Insomnia push an international expansion.
“Both efforts have been successful and it’s time for the next strategic step for both companies,” Krispy Kreme Chief Executive Officer Mike Tattersfield said.
Insomnia Cookies, with more than 250 locations in three countries, is expected to generate $230 million in sales in fiscal year 2023. Almost half of its revenue comes from online sales.
Krispy Kreme hired Evercore and Morgan Stanley to advise on the process. The chain has 13,000 locations in 37 countries, according to the statement. Shares rose 3% before regular trading in New York.
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