Author: Abigail Summerville
NEW YORK (Reuters) – The owners of Crumbl are exploring a sale that could value the popular cookie chain at nearly $2 billion, including debt, according to people familiar with the matter.
The Lindon, Utah-based bakery franchise is working with investment bank North Point on a sale process that could attract interest from private equity firms, said the sources, who requested anonymity because the matter is confidential.
The cookie chain’s owners hope to command a business valuation of more than 10 times its annual earnings before interest, taxes, depreciation and amortization of nearly $150 million, the sources said.
Crumbl and North Point did not immediately respond to requests for comment.
Launched in 2017 by cousins Jason McGowan and Sawyer Hemsley, Crumbl has amassed a significant social media following in recent years on platforms such as TikTok, Instagram and YouTube.
The company, which sells its biscuits in a distinctive pink box with its logo, opened its first location in 2017 in Logan, Utah, when Hemsley was completing his degree at Utah State University. Crumbl now has a presence in 1,071 locations across North America, according to its website.
The confectionery chain’s move to explore a sale comes at a time when large investment firms are actively snapping up franchise operators, who typically earn steady royalty payments and are cheaper to operate.
Last year, Verlinvest and Mistral Equity Partners bought Insomnia Cookies from Krispy Kreme (NASDAQ: ) in a $350 million deal.
In December, Reuters reported that private equity firm Bain Capital was in talks to acquire franchise restaurant operator Sizzling Platter.
