Private Equity Firm Plans to Purchase Nothing Bundt Cakes and People Are Already Saying RIP NBC

Turns out you really can put a price on everything – including cake. Up until now, Nothing Bundt Cakes has managed to toe the line between feeling like a small, friendly company while also managing a precipitous rise to the top of the food chain, helped in part by its cute little mini bundt cakes and favorites like its banana pudding and Dubai chocolate flavors. Now, though, the business may be set to enter into a new phase of its life – by being bought by private equity firm KKR. 

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What does this mean for the cozy cake company, though? And how much might it sell for? We’ve got everything you need to know. 

There’s Nothing Small About This Deal

Last week, it was announced over on LinkedIn (via the Wall Street Journal) that private equity supremo KKR was planning to acquire Nothing Bundt Cakes for a massive $2 billion. This deal would see the firm take over from Roark Capital and acquire Nothing Bundt Cakes’ debt, along with the purchase of the brand itself. 

It’s a pretty huge number for a cake company that was founded just over 25 years ago by two moms who wanted to combine their passion for baking with entrepreneurship. It probably shouldn’t be a surprise that it fetches such a high price, though: Nothing Bundt Cakes now has more than 600 locations in the United States, and it’s one of the most popular cake brands out there. It’s an attractive prospect.

What About My Bundt Cakes? What Will Happen to Them?

It remains to be seen. It’s worth noting that Nothing Bundt Cakes has been managed by Roark since 2021, so it’s already had a half-decade of being owned by private equity – and it hasn’t exactly hurt its fortunes thus far. However, it’s never especially promising news when a brand changes hands from equity firm to equity firm, and there’s always a risk that the new one involved could dilute what makes it so special, or else make its products worse. Recently, Jersey Mike’s has been accused of making its sandwiches smaller following an acquisition by Blackstone, just the latest in a long line of food brands that have seemed to turn sour once big business steps in. 

It’s no wonder, then, that people are a little concerned about this latest development and what it could potentially mean for the brand’s range of bundt cake flavors. Maybe it could change very little; maybe it could spell the end of the brand’s generational run. Maybe the deal will fall through. We’ll just have to wait and see.