TSG Consumer Partners is set to acquire a minority stake in Crumbl, the fast-growing cookie and dessert chain valued at nearly $2bn including debt, according to sources familiar with the matter.

The private equity firm is investing via preferred equity and joins a growing list of sponsors targeting premium consumer food brands. Private credit funds are reportedly in talks to provide approximately $500m in debt financing alongside the deal.

Founded in 2017, Crumbl has expanded to over 1,000 stores across the US, Puerto Rico, and Canada. With estimated EBITDA approaching $150m, the company sells more than 1 million desserts daily and generates strong consumer traction through social media platforms such as TikTok.

“We are confident that, in TSG, we have found a partner with a demonstrated track record of building industry-leading franchise food brands,” a Crumbl representative said.

TSG’s move comes amid growing private equity interest in the dessert category. Recent deals include Verlinvest and Mistral Equity Partners’ acquisition of a majority stake in Insomnia Cookies and Stripes’ backing of Levain Bakery since 2018.

Source: Bloomberg