Roark Capital is exploring a sale of Nothing Bundt Cakes that could value the U.S. bakery chain at more than $2bn, according to people familiar with the matter cited by Reuters.

The Atlanta-based private equity firm has hired North Point Advisors and Bank of America to oversee the process, which is expected to begin early next year.

Dallas-headquartered Nothing Bundt Cakes, founded in 1997, sells handcrafted bundt cakes in various sizes and flavours through a mix of franchised and company-owned stores. The business is projected to generate approximately $120m in EBITDA in 2026.

Roark acquired the company in 2021 from Levine Leichtman Capital Partners, when it operated around 390 stores. Since then, the brand has expanded to nearly 700 locations across 40 states and Canada, becoming one of the fastest-growing bakery franchises in North America.

If completed, the sale would represent another major realisation for Roark, which manages $41bn in assets and remains one of the most active private equity investors in the consumer and restaurant sectors. The firm has recently completed several high-profile deals, including its 2023 acquisition of Subway and this year’s $1bn purchase of Dave’s Hot Chicken.

Roark’s portfolio also includes Inspire Brands, the parent of Dunkin’, Baskin-Robbins, Arby’s, and Sonic, underscoring its strong focus on franchised consumer businesses.

North Point and Bank of America are advising on the sale. Roark and Nothing Bundt Cakes have not commented.

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