NewSpring, a family of private equity strategies, has, through NewSpring Franchise, the firm’s newest strategy focused on investing in innovative franchise and multi-unit concepts, has completed the acquisition of Duck Donuts. Free Fenix, a Charlotte, NC-based hybrid investment company, partnered with NewSpring on the deal, providing a significant growth investment. Headquartered in Mechanicsburg, Pennsylvania, Duck Donuts is donut franchise.
Russ DiGilio, founder and former CEO of Duck Donuts, said, “Duck Donuts could not be more excited to partner with the NewSpring team, who offer a wealth of knowledge and experience that will elevate our brand to the next level. The past 14 years have been an amazing journey and we wouldn’t be where we are today without the dedication, passion, and trust of our franchisees and corporate team members. I look forward to watching the brand continue to evolve and build on the success we have already achieved in such a short period.”
In conjunction with the deal, DiGilio, who remains a significant owner, has stepped down as CEO and named Betsy Hamm, formerly chief operating officer, to the role.
Patrick Sugrue, NewSpring general partner, added, “At NewSpring Franchise, we seek out multi-unit brands with a loyal customer base and a fast-growing geographic footprint. Duck Donuts perfectly fits that model. Duck Donuts is differentiated by its customer experience and CEO Betsy Hamm has done a tremendous job expanding the Company’s presence in communities across the country to position the Company for future growth into new markets. We are thrilled to partner with Betsy and her team to take Duck Donuts to the next level.”
Satya Ponnuru, NewSpring general partner “As a leader in the made-to-order donut category with a strong business model that’s attractive to new franchisees, Duck Donuts has quickly expanded its geographic footprint and grown its number of locations. The Company’s customizable product and award-winning customer service continue to elevate and differentiate the Duck Donuts brand and we look forward to growing its presence across the U.S.”