A beloved Texas-born doughnut chain with deep roots in the Hill Country has just been sold, and the news is sparking conversation across the state.
Houston-based Shipley Do-Nuts, known for its warm glazed doughnuts, kolaches, and coffee, has been acquired by California private equity firm Levine Leichtman Capital Partners (LLCP). The deal was announced Monday following a period of massive growth under its previous owner, Austin’s Peak Rock Capital.
With three Shipley locations in New Braunfels and several more across the Hill Country, this move is one that hits close to home for all Texans.
Founded in 1936, Shipley was a family-owned mainstay in Texas for decades before selling to Austin-based Peak Rock in 2021.
Under Peak Rock’s leadership, Shipley underwent significant growth, expanding from 300 to 375 stores across 14 states, launching a new corporate headquarters and R&D lab, and achieving 18 consecutive quarters of same-store sales growth.
With that kind of growth, it’s not surprising to see the beloved donut shop attract national attention and ultimately land in the hands of a major private equity firm looking to scale the brand even further.
Now, with its sale to LLCP, the company is taking another major step toward national franchise dominance. LLCP, which also owns Nothing Bundt Cakes and Tropical Smoothie Café, plans to build on that momentum. According to Shipley CEO Flynn Dekker, 40 new locations are set to open by the end of the year, with another 200 in development.
For local fans in New Braunfels, home to three Shipley locations, the sale likely won’t mean any immediate changes to your morning donut runs. But the big news here is that Shipley is no longer Texas-owned. For a town that prides itself on Hill Country heritage and homegrown brands, that’s a big emotional moment.
Whether the quality, community feel, or product lineup changes at all under new ownership remains to be seen. However, as Shipley continues its rapid expansion nationwide, many Texans are understandably wondering if the shop will remain true to its roots.