KKR & Co Inc (NYSE:KKR) is acquiring Nothing Bundt Cakes from private equity firm Roark Capital for more than $2 billion. 

The company added 390 locations since Roark acquired the chain in 2021. The private equity firm has been looking for a buyer for the U.S. bakery chain since last year, Restaurant Business reported.

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Nothing Bundt Cakes was founded in 1997 by Dena Trip and Debbie Shwetz. The bakery makes customizable bundt cakes for all occasions and has more than 600 locations across the U.S.

KKR previously made a strategic investment into India-based cloud kitchen platform Rebel Foods, the parent company of brands such as Faasos, Oven Story Pizza and The Good Bowl. 

KKR has also historically invested in major food industry entities such as Del Monte Foods and various supermarket chains like Safeway and Stop & Shop.

Roark Capital has made acquisitions with other franchise businesses including Arbys, Culvers, Jimmy John’s, Auntie Anne's and Subway. Last year, the firm acquired Nashville-style spicy chicken chain Dave's Hot Chicken for $1 billion.

The Atlanta-based private equity firm has $41 billion in assets under management. Roark focuses on investments in consumer and business services companies, with a specialization in franchise and franchise-like business models, its website states.

Private equity firms have been buying up franchises in recent years due to the value proposition that franchising offers. PE in franchising offers investors "fast, scalable growth with predictable revenue streams.”

“That predictability, often delivered through royalty-based cash flows and ongoing fees, is a natural fit for PE's typical 5-year investment horizon and margin expectations," a financial news platform, StancheCow, reported.

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