U.K. Krispy Kreme Unit’s Owner Said to Cancel IPO, Favor SaleBy and
Private equity firm Alcuin Partners said to drop IPO plan
Reimann family firm previously acquired U.S. Krispy Kreme
Private equity firm Alcuin Capital Partners LLP has canceled an initial public offering in the U.K. arm of doughnut maker Krispy Kreme, moving instead to accept a buyout offer from the owner of its U.S. namesake, according to people familiar with the situation.
Bankers preparing the IPO were told to hold off on Sunday after discussions over a takeover progressed, one of these people said. The price, this person added, will be in the same range as the planned IPO, which was expected to value the business at 187 million pounds ($240 million) to 212 million pounds.
The sale would provide a windfall for Alcuin, which took control of the U.K. arm in 2011 at a price of about 25 million pounds, according to a person familiar with the situation. The first Krispy Kreme shop in London opened in 2003.
The U.K. business could also attract interest from other bidders, including private equity firms, should a deal with Krispy Kreme fail, one person said.
Alcuin Capital and Krispy Kreme Doughnuts did not immediately return calls.