A popular donut brand has big plans for future growth after it was purchased by a private equity firm this week.
On Wednesday, NewSpring Franchise, a family of private equity strategies, announced its purchase of Duck Donuts, a donut brand that originated in the Outer Banks.
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Free Fenix, a North Carolina hybrid investment company, has partnered with NewSpring on the purchase and is making a large investment to help further its expansion.
Partnering with NewSpring will help Duck Donuts accelerate growth, increase brand awareness and strengthen corporate and franchise culture, according to officials.
“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,” founder and former CEO of Duck Donuts Russ DiGilio said. “I look forward to watching the brand continue to evolve and build on the success we have already achieved in such a short period.”
The company also announced that DiGilio will be stepping down as CEO and Betsy Hamm, formerly chief operating officer, will now fill the role.
“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,” NewSpring General Partner Patrick Sugrue said.
While Duck Donuts is partnering with NewSpring, all Duck Donut franchise locations, including Roanoke, will remain locally owned and operated.