TSG Consumer Partners is reportedly in advanced discussions to acquire a minority interest in Crumbl, the rapidly expanding cookie and dessert chain, through a preferred equity investment, according to a report by Bloomberg citing sources familiar with the matter.
Negotiations between the consumer-focused private equity firm and Crumbl are ongoing, with final terms yet to be agreed. Sources indicated the structure of the deal may still evolve.
In parallel, private credit providers are said to be in talks to supply approximately $500m in debt financing to support the business, one person with knowledge of the matter said.
Founded in 2017 by CEO Jason McGowan and Chief Brand Officer Sawyer Hemsley, Crumbl has scaled rapidly, operating more than 1,000 locations across the US, Puerto Rico, and Canada.
The company sells over one million desserts daily and operates under a franchise model, according to its website. Its rotating menu and active social media presence – particularly on TikTok – have been key drivers of brand engagement and growth.
Crumbl’s owners have been exploring strategic options, including a potential sale that could value the company at nearly $2bn, including debt, based on reported EBITDA of approximately $150m, according to a January report by Reuters.
The deal would mark another significant private equity move in the baked goods space. In July 2023, Krispy Kreme divested a majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners, while Stripes has backed Levain Bakery since 2018.
