By Abigail Summerville
NEW YORK (Reuters) – The owners of Crumble are exploring a sale that could value the popular cookie chain at about $2 billion, including debt, according to people familiar with the matter.
The Lindon, Utah-based bakery franchise chain is working with investment bank North Point on a marketing plan that could attract interest from private equity firms, the sources said, asking not to be identified as the matter is confidential.
The cookie chain's owners hope to command an enterprise value equal to more than 10 times its annual earnings before interest, taxes, depreciation, and amortization of nearly $150 million, sources said.
Crumble and North Point did not immediately respond to requests for comment.
Launched in 2017 by cousins Jason McGowan and Sawyer Hemsley, Crumble has in recent years amassed a social media following on platforms such as TikTok, Instagram, and YouTube.
The company, which sells its cookies in a distinctive pink box with its logo, opened its first location in 2017 in Logan, Utah, when Hemsley was finishing his degree at Utah State University. Crumble is now available in 1,071 locations in North America, according to its website.
The move to explore the marketing strategy comes as big investment firms actively acquire franchise operators, who generate stable fees and are cheap to operate.
Last year, Verlinvest and Mistral Equity Partners acquired Insomnia Cookies Krispy Kreme (NASDAQ:) in a deal valued at $350 million.
In December, Reuters reported that private equity firm Bain Capital was in talks to acquire restaurant operator Sizzling Platter.