PHILADELPHIA — The private equity owners of Insomnia Cookies have bought out Krispy Kreme’s minority stake in the fresh-baked cookie chain and online store for $75 million in cash.

Verlinvest and Mistral Equity Partners, which announced the deal on June 10, acquired a majority interest in Insomnia Cookies from Krispy Kreme last July for $127.4 million. Krispy Kreme, a portfolio company of JAB Holding Co., had purchased Philadelphia-based Insomnia in July 2018 but then in October 2023 put the cookie bakery up for sale.

Insomnia and its investment partners said the acquisition of Krispy Kreme’s stake will better position the brand to reach its expansion goal of 1,800 bakery store locations globally over the next decade. The fast-growing business, founded in 2003, now operates nearly 350 retail stores in the United States, Canada and the United Kingdom, after having opened its 300th location in Seattle last September.

“We’re excited for this next phase of growth with Verlinvest and Mistral Equity Partners,” said Seth Berkowitz, founder and chief executive officer of Insomnia Cookies. “We’re united by a shared vision: to establish Insomnia as the undisputed leader in the indulgence category. With this support, we’re poised to rapidly scale and deliver more warm, delicious cookies to Insomniacs around the world.”

Charlotte, NC-based Krispy Kreme said it will use the cash proceeds from the Insomnia sale primarily to pay down debt.

“We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth,” said Josh Charlesworth, CEO of Krispy Kreme. “This is an important step as we focus on our two biggest opportunities: profitable US expansion and capital-light international franchise growth. We wish Insomnia Cookies and their ownership group well as they work to realize the full potential of this unique brand.”

When Verlinvest and Mistral acquired a majority interest in Insomnia, the business had annual sales of approximately $230 million. The investment firms said that, since then, the cookie bakery has achieved double-digit annual revenue growth and “robust profit expansion through both organic and new bakery openings.” Insomnia’s offerings include gourmet cookies, cookie cakes, ice cream and cookie ice cream sandwiches.

“We are thrilled to deepen our investment in a brand that brings joy to customers one cookie at a time,” said Andrew Heyer, managing director at Mistral. “Insomnia’s world-class logistics and distribution platform, high-quality products, and passionate customers have reinforced our confidence in their continued growth and success.”

Insomnia opened a new global headquarters in February 2024 in Philadelphia. Under the new ownership, the company also has bolstered its executive team, including Brent Chu as chief financial officer, who brings experience in consumer goods and retail finance from companies such as PepsiCo, Ferrara Candy Co. and La Colombe; Katie Seawell as chief marketing officer, whose background includes experience at top consumer packaged goods and retail brands such as Starbucks; and Stephanie Boughner as chief people officer, with experience at companies such as Curio Wellness, Aramark and Talent Solutions TAPFIN.