Beverly Hills-based Sprinkles Cupcakes today announced that it has received an investment from KarpReilly, LLC. Founded by Candace and Charles Nelson, Sprinkles opened in 2005 as the world’s first cupcake bakery and has gone on to receive widespread acclaim for its innovative and always fresh offerings. Today, the company owns and operates eleven cupcake bakeries, with plans to add a number of additional locations this year in both new and existing markets. Over the past year, the company has also successfully introduced its new Sprinkles Ice Cream offering and entered into its first international franchising agreement, both of which it expects to be significant drivers of growth for the brand over the coming years.
“With so many exciting opportunities available to Sprinkles, we wanted to make sure we found a partner that could provide us with not only capital to grow, but more importantly, a depth of experience working with and supporting high growth consumer brands that will allow us to take full advantage of those opportunities,” said Charles Nelson. “What makes Sprinkles such an attractive business to partner with is that, despite an incredible amount of early success, the focus has always remained on improving and evolving the concept,” said Allan Karp, founder, KarpReilly. “We think Sprinkles is truly a world-class brand and look forward to working with Candace and Charles to continue what has been a remarkable success story.”
North Point Advisors served as Sprinkles Cupcakes’ advisor in the transaction and ORIX Leveraged Finance provided debt financing.
January 17, 2013