Krispy Kreme Acquiring Insomnia Cookies For Undisclosed Sum

Famed doughnut maker Krispy Kreme says that it is purchasing a majority stake in cookie-delivery chain Insomnia Cookies, a move that could expand its reach beyond just doughnuts and pastries.

The North Carolina-based chain announced on Friday that it would acquire a majority stake in Insomnia Cookies. Details are scant, however, CNBC reported that the deal valued Insomnia at just shy of $500 million. The Philadelphia-based cookie company currently has 135 stores in the U.S., with a cult following consisting of mostly college students looking for a late-night snack.

"At Krispy Kreme, we have an 81-year heritage of creating the most awesome doughnut experience imaginable, and today we are delighted to add Insomnia Cookies, a rapidly growing business with an innovative delivery experience and exceptional product that is beloved by consumers," Mike Tattersfield, Krispy Kreme's CEO, said in a statement.

This deal represents another building block in the coffee and restaurant empire that European investment firm JAB Holding is creating. The Luxembourg City-based company bought Krispy Kreme in 2016 for roughly $1.35 billion, Forbes reported. Since then, it has obtained café brands including Peet's Coffee & Tea, Panera, Au Bon Pain, and Pret A Manger.

Insomnia Cookies was founded in 2003 by Seth Berkowitz, who, at the time, was a student at the University of Pennsylvania. Its stores, often located in college towns, stay open and deliver until 3:00 a.m. It sells cookies, brownies, and milk. Berkowitz will remain in charge after the close of the sale later this year and Insomnia Cookies will operate independently.

"Mike and I share the same ambition for our brands: To be the best at what we do and delight consumers with the highest-quality sweet-treat experiences," Berkowitz said in a statement. "My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth."

Krispy Kreme, founded in 1937, is popular for its signature fresh and hot glazed doughnuts. It owns nearly 1,400 retail shops in the U.S. and 32 other countries.