BERWYN, PA – NewSpring, a family of private equity strategies, has announced that NewSpring Franchise, its newest strategy focused on investing in franchise and multi-unit concepts, has completed the acquisition of Mechanicsburg, Pa.-based Duck Donuts. Financial terms were not disclosed.
By partnering with NewSpring, Duck Donuts will be able to accelerate growth, increase brand awareness and strengthen corporate and franchise culture, the company said. The enterprise will provide access to capital and additional resources to strengthen Duck Donuts’ existing infrastructure and locations.
“Duck Donuts could not be more excited to partner with the NewSpring team, who offer a wealth of knowledge and experience that will elevate our brand to the next level,” said Russ DiGilio, founder of Duck Donuts. “The past 14 years have been an amazing journey, and we wouldn’t be where we are today without the dedication, passion and trust of our franchisees and corporate team members. I look forward to watching the brand continue to evolve and build on the success we have already achieved in such a short period.”
Mr. DiGilio, who remains a significant owner, has stepped down as Duck Donuts’ chief executive officer and Betsy Hamm, former chief operating officer, has been promoted to the role. Ms. Hamm will focus on building and protecting the franchise brand and providing franchise support while driving company growth and profitability. She is responsible for strengthening company culture, ensuring operational efficiencies and maximizing franchisee success. Mr. DiGilio will continue his founder role and serve as a member of the newly formed board.
“At NewSpring Franchise, we seek out multi-unit brands with a loyal customer base and a fast-growing geographic footprint. Duck Donuts perfectly fits that model,” saidPatrick Sugrue, NewSpring general partner. “Duck is differentiated by its customer experience, and CEO Betsy Hamm has done a tremendous job expanding the company’s presence in communities across the country to position the company for future growth into new markets. We are thrilled to partner with Betsy and her team to take Duck Donuts to the next level.”
Since launching in 2007, Duck Donuts has expanded to one international and 101 US franchise locations across 21 states.