U.S. private equity firm KKR has struck a deal to acquire bakery chain Nothing Bundt Cakes from Roark Capital for over $2 billion, including debt, a source familiar with the matter told Reuters on Wednesday.
- The bakery was launched in 1997 and sells hand-crafted bundt cakes in a variety of flavors and sizes. It was acquired by Roark in 2021.
- Roark was running a sale process for the bakery chain with investment banks North Point and Bank of America, Reuters reported last year.
- Nothing Bundt Cakes, which operates more than 500 bakeries across the U.S. and Canada, expects to generate around $120 million in earnings before interest, taxes, depreciation and amortization this year, Reuters previously reported.
- The deal follows Atlanta, Georgia-based Roark’s acquisitions of Dave’s Hot Chicken last year and Subway in 2023.
- The deal was first reported by the Wall Street Journal.
- KKR declined to comment and Roark did not immediately respond to a Reuters request for comment.
