Doughnut retailer Krispy Kreme has chosen to withdraw its planned £200m London flotation after announcing the 100% sale of its shares to US parent brand owner Krispy Kreme Group.
A deal was in place for the brand to join a number of floats in the UK, but the London listing has been scrapped after the takeover deal from the American parent would bring the Britain operation back in-house.
The business, which only entered the UK in 2003, has grown to more than 1,000 locations and employs 5,000 staff. It has since expanded across Britain with its own stores, but also has self-service in around 500 Tesco supermarkets and motorway services.
The UK business sells about 50m doughnuts a year and was owned by Alcuin after it took control in a deal in 2011 that valued the company at around £25m.
Mike Dowell, CEO of Krispy Kreme UK, commented: “Today’s announcement is very exciting for our business and all of our people. Krispy Kreme Group has been very supportive of our progress and growth over recent years and we look forward to working more closely with them as we continue to grow the brand in the UK and Ireland.”
In July, Krispy Kreme increased its UK presence with two new outlets opening up in Glasgow and a deal on airline Flybe.