Crosstown Doughnuts, the artisan doughnut, small batch ice-cream and specialty coffee brand, has secured new investment following a sale of substantially all of the business and its assets to Karali Snacks Limited.
The transaction includes the acquisition of 27 operating locations, including the majority of the stores, market units, kiosks, concessions, and trucks, as well as the transfer of 140 staff, including the leadership team of the business.
Crosstown has been working with its advisers from Interpath Advisory to explore investment options that could support its continued operations and its future expansion.
Karali Snacks Limited, which has acquired the business and assets of Crosstown Dough Ltd, and which is part of the Karali Group led by Salim Janmohamed and Karim Janmohamed, is a diversified, multi-national hospitality and real estate platform operating franchises in the fast-food, casual dining and hospitality sectors. The Crosstown business will continue to be led by CEO Howard Ebison.
“We’re delighted to start the next chapter for Crosstown,” comments Howard Ebison. “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.
“The Karali Group brings a wealth of experience and an exceptional track record growing hospitality brands. Their investment is testament to the strength of the Crosstown brand, the commitment of our teams and the loyalty of our customers.”
Sam Birchall, head of Special Situations M&A at Interpath Advisory, added: “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. We wish the team all the best for the future.”
Karim Janmohamed of Karali Group adds: “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.
“Karali Snacks, a division of the Karali Group, will manage the investment in Crosstown as the Karali Group furthers its investment strategy across the retail, consumer, leisure and real estate spaces.”
Sarah Teal, Corporate Restructuring and Advisory Partner at Shoosmiths, said: “We are pleased to have played a part in this pivotal moment for the Crosstown team. Today’s result is thanks to many hours of dedicated collaborative work and it has been a pleasure working closely with Crosstown and their advisers at Interpath. We are confident that with the backing of Karali, this exciting business will continue to flourish and grow.”
