09:34 AM EDT, 07/22/2024 (MT Newswires) -- Krispy Kreme (DNUT) said Monday that it sold its majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners on Wednesday for a $350 million total enterprise value.

The doughnut maker said it has received $127.4 million for the sale and expects to get an additional $45 million in the coming weeks following an Insomnia Cookies refinancing of intercompany debt.

Krispy Kreme said it plans to use the sale proceeds to expand its fresh doughnut business. It will retain a roughly 34% minority stake in Insomnia Cookies.

Krispy Kreme said it expects to provide its updated 2024 outlook during its upcoming Q2 earnings call.

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