Franchising

Duck Donuts under new leadership, ownership

April 14, 2021

Mechanicsburg, Pennsylvania-based Duck Donuts has a new CEO and parent company. NewSpring Franchise, which is focused on investing in franchise and multi-unit concepts, acquired the 101-unit doughnut shop this week with backing from Free Fenix, a Charlotte-based hybrid investment company.

"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," Russ DiGilio, founder and original CEO of Duck Donuts, said in a company press release. He launched the brand in 2007 in the town of Duck in the Outer Banks of North Carolina and began franchising in 2013. The chain now spans 27 states and four countries.

"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," said DiGilio, who remains a significant owner and board member but has stepped down as CEO. Betsy Hamm, formerly chief operating officer, is now filling that role.

"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," Patrick Sugrue, NewSpring general partner and former Saladworks CEO, said in the release. "Duck Donuts 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."

The acquisition of Duck Donuts is the second investment out of NewSpring Franchise, a newly launched strategy led by NewSpring General Partners, Satya Ponnuru and Sugrue. It also owns a blow-dry bar called Blo.

"As a leader in the made-to-order donut category with a strong business model that's attractive to new franchisees, Duck Donuts has quickly expanded its geographic footprint and grown its number of locations," Ponnuru said in the release. "The company's customizable product and award-winning customer service continue to elevate and differentiate the Duck Donuts brand and we look forward to growing its presence across the U.S."

NewSpring manages over $2 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt.