Texas' favorite doughnut institution has a new owner. Shipley Do-Nuts, the Houston-based chain known for its iconic hexagonally-shaped doughnuts, has been acquired by California private equity firm Levine Leichtman Capital Partners.

Before Texas doughnut lovers experience a collective freak-out about what private equity ownership might mean for restaurants, it’s worth nothing that Shipley’s most recent owner was also a private equity firm — Austin’s Peak Rock Capital acquired Shipley in 2021.

Peak Rock touts a number of successes during its four years with Shipley, growing the company to more than 375 stores across 14 states. They currently have 25 locations across Dallas-Fort Worth, most outside the 635 loop. They also opened a new headquarters and R&D facility in Houston, according to a release.

"We are proud of the success Shipley has achieved during our ownership and honored to have contributed to the evolution of this iconic brand,” said Robert Strauss, senior managing director of Peak Rock. “Our investments in people, processes and technology have propelled Shipley to achieve transformational growth. We have deeply appreciated the support of Company's loyal customers, franchisees, employees, and the Shipley family."

Founded in Houston in 1936, Shipley offers more than 60 doughnut varieties, including their signature plain glazed, cut in Shipley's hexagon shape with a lighter, fluffier texture; plus filled, iced, and cake donuts, bear claws, and coffee. They're also known for kolaches in varieties that include Bacon, Egg & Cheese, Ham & Cheese and Sausage, Jalapeno & Cheese.

Prior to Peak Rock’s acquisition, Shipley had been a family-owned business led by Lawrence Shipley III. The family remained as investors in the business and are likely realizing a significant windfall as a result of Levine Leichtman’s purchase.

"We have benefited greatly from our partnership with Peak Rock, and their approach has been key to unlocking Shipley's impressive growth,” Shipley CEO Flynn Dekker said. “We are committed to supporting our franchisees' businesses and serving our customers the world's greatest donut as we continue to introduce our iconic brand to more and more communities across the nation."

Just as Peak Rock brought experience with food-related businesses to Shipley, so too does Levine Leichtman. It has been involved with restaurants such as Mountain Mike’s Pizza, Nothing Bundt Cakes, and Kilwins, a chocolate and ice cream concept from Petoskey, Michigan.

Private equity firms have shown regular interest in Texas restaurants. In November 2020, KSL Capital Partners invested in Hai Hospitality, the Austin-based group behind Uchi, Uchiko, and Loro. More famously, Chicago’s BDT Capital Partners acquired a majority stake in Whataburger in 2019.