The British arm of Krispy Kreme doughnuts has reportedly been bought by a private equity firm, in a deal that values the business at £25m.

Alcuin Capital, whose current investments include Caffè Nero, has bought Krispy Kreme UK from Cheshire and Kent, an investment group led by three American entrepreneurs.

Haven Burke, Dick Clark and Edward Fishman founded the doughnut retailer in the UK eight years ago after securing a franchise agreement from US-based Krispy Kreme Doughnuts Inc.

A report in the Sunday Times suggested that Richard Cheshire and Rob Hunt, Krispy Kreme UK’s existing managing directors, will get a larger shareholding in the business as part of the deal with Alcuin. Mark Storey, who works at the private equity firm Alcuin, has been appointed as chairman of the company.

Krispy Kreme UK now has 45 stores in Britain and also 350 cabinets offering doughnuts in major food retailers, such as Tesco, but it is believed there are now plans to expand to around 80 outlets.

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