Houston’s homegrown doughnut institution has a new owner. Shipley Do-Nuts has been acquired by California-based private equity firm Levine Leichtman Capital Partners. Terms of the deal were not disclosed.

Before the city’s doughnut lovers experience a collective freak out about the evils of what private equity ownership means for restaurants, it’s worth nothing that Shipley’s most recent owner is also a private equity firm — Austin’s Peak Rock Capital acquired Shipley in 2021.

Peak Rock touts a number of successes during its four years with Shipley, growing the company to more than 375 stores across 14 states. It also opened a new headquarters and R&D facility in Houston, according to a release.

"We are proud of the success Shipley has achieved during our ownership and honored to have contributed to the evolution of this iconic brand,” said Robert Strauss, senior managing director of Peak Rock. “Our investments in people, processes and technology have propelled Shipley to achieve transformational growth. We have deeply appreciated the support of Company's loyal customers, franchisees, employees, and the Shipley family."

Prior to Peak Rock’s acquisition, Shipley had been a family-owned business led by Lawrence Shipley III. The family remained as investors in the business and are likely realizing a significant windfall as a result of Levine Leichtman’s purchase.

"We have benefited greatly from our partnership with Peak Rock, and their approach has been key to unlocking Shipley's impressive growth,” Shipley CEO Flynn Dekker said. “We are committed to supporting our franchisees' businesses and serving our customers the world's greatest donut as we continue to introduce our iconic brand to more and more communities across the nation."

Just as Peak Rock brought experience with food-related businesses to Shipley, so too does Levine Leichtman. It has been involved with restaurants such as Mountain Mike’s Pizza, Nothing Bundt Cakes, and Kilwins, a chocolate and ice cream concept from Los Angeles.

Private equity firms have shown regular interest in Texas restaurants. In November 2020, KSL Capital Partners invested in Hai Hospitality, the Austin-based group behind Uchi, Uchiko, and Loro. Even more famously, Chicago’s BDT Capital Partners acquired a majority stake in Whataburger in 2019. Saigon Hustle, a Houston-based fast casual Vietnamese restaurant, is part of the venture-backed Savory Fund.