Krispy Kreme is buying a majority stake in Insomnia Cookies in a move that should be a step for the coffee-and-doughnut chain to pad its offerings beyond glazed treats.
Winston-Salem, North Carolina-based Krispy Kreme, which reportedly valued Insomnia, which specializes in late-night warm cookie deliveries, at less than $500 million.JAB Holding in 2016 for $1.35 billion, made the announcement Friday. Terms were not disclosed, but the deal
Krispy Kreme CEO Mike Tattersfield says in a statement they are "delighted" to add Philadelphia-based Insomnia to the company, which operates nearly 1,400 stores in 32 countries.
The deal should expand Krispy Kreme's reach to include consumers beyond doughnut fans, and give it a new delivery infrastructure.
Seth Berkowitz will remain in charge of Insomnia after the close of the sale later this year.
Berkowitz founded Insomnia Cookies in 2003 when he was a student at the University of Pennsylvania.