Artisan doughnut brand Crosstown Doughnuts has secured new growth funding after being sold to Karali Snacks, an arm of former Burger King UK franchisee Karali Group.
The transaction includes all of Crosstown Doughnuts’s 27 shops, stalls, kiosks and trucks and the transfer of 140 staff.
Crosstown had been working with advisory firm Interpath to explore investment options that could support its future expansion.
The Crosstown business will continue to be led by existing CEO Howard Ebison.
“We’re delighted to start the next chapter for Crosstown,” he said.
“Since we launched 10 years ago, the fantastic team has created a completely unique proposition in bakery. Crosstown has become a destination for food and flavour, both in store and online.
“Karali’s investment is testament to the strength of the Crosstown brand, the commitment of our teams and the loyalty of our customers.”
Karali Snacks is part of the Karali Group, a multi-national hospitality and real estate platform operating franchises in the fast food, casual dining and hospitality sectors.
Karim Janmohamed of Karali Group added: “We are delighted to get this transaction over the line and are excited about the opportunity to work with the Crosstown team on further developing and enhancing this fantastic brand and offering.
“The Crosstown brand is synonymous with excellence, innovation and quality in the bakery sector, and we were immediately attracted to the chance to invest and propel the business forward.”
Sam Birchall, head of Special Situations M&A at Interpath Advisory, commented: “The team at Crosstown has a great concept that has gained an enviable foothold in the market. This transaction will enable the team to build upon its network of retail outlets with the investment and support of Karali Snacks.”
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