US-based private equity firm Roark Capital is exploring a sale of bakery chain Nothing Bundt Cakes with a potential valuation of up to $2bn, according to a report by Reuters citing people familiar with the matter. The firm has reportedly hired advisers North Point and Bank of America to run the sale process, which is expected to launch in early 2026.
Founded in 1997, the Dallas-based chain was acquired by Roark in 2021 and now operates around 700 locations across the US and Canada, growing from 390 at the time of the investment. It is projected to generate roughly $120m EBITDA in 2026, according to the sources.
The move underscores sustained appetite among sponsors to monetise franchised restaurant chains: Blackstone bought Jersey Mike’s Subs for around $8bn in 2024.
