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

Written by Abigail Somerville

NEW YORK (Reuters) – Crumble’s owners are exploring a sale that could value the popular cookie chain at nearly $2 billion, including debt, according to people familiar with the matter.

The Lyndon, Utah-based bakery franchise chain is working with investment bank Northpoint on a sale that could attract interest from private equity firms, said the sources, who requested anonymity because the matter is confidential.

The owners of the cookie chain are hoping to get a company valuation equivalent to more than 10 times its annual earnings before interest, taxes, depreciation and amortization of nearly $150 million, the sources said.

Crumble and Northpoint did not immediately respond to requests for comment.

Launched in 2017 by cousins ​​Jason McGowan and Sawyer Hemsley, Crumbl has in recent years gained a large following on social media across platforms such as TikTok, Instagram and YouTube.

The company, which sells its cookies in a distinctive pink box bearing its logo, opened its first location in 2017 in Logan, Utah, when Hemsley was finishing up at Utah State University. Crumbl is now in 1,071 locations across North America, according to its website.

The candy chain’s move to explore a sale comes as large investment firms are actively snapping up franchise operators, which typically generate fixed royalties and are less expensive to operate.

Last year, Verlinvest and Mistral Equity Partners acquired Insomnia Cookies from Verlinvest and Mistral Equity Partners Krispy Kreme (NASDAQ:) in a $350 million deal.

In December, Reuters reported that private equity firm Bain Capital was in talks to acquire restaurant franchise operator Sizzling Platter.