AN ASIAN business group run by a father-son duo has acquired the artisan doughnut brand Crosstown Doughnuts, according to media reports.
Karali Snacks Limited, an arm of Karali Group led by Salim Janmohamed and Karim Janmohamed, has acquired the business and assets of Crosstown Doughnuts, which operates from 27 locations and employs 140 people.
Karali Group was the largest UK franchise of Burger King and exited the portfolio in 2022. It still operates in the North American market with 32 Burger King outlets in Ohio and Pennsylvania.
Crosstown Doughnuts has been in existence for around 10 years and launched a search for new investment early this year.
It had been working with advisers from Interpath Advisory. Freeths advised Karali Group on the acquisition.
Even after the takeover, Crosstown Doughnuts will continue to be led by chief executive Hoard Ebison.
Ebison said this is the "next chapter" for Crosstown. He said Crosstown has become a "destination for food and flavour, both in-store and online".
He said the Karali Group's investment is a testament to the strength of the Crosstown brand.
Sam Birchall, head of Special Situations M&A at Interpath Advisory, said, “The team at Crosstown has a great concept that has gained an enviable foothold in the market."
He hopes the Crosstown team will build upon its network of retail outlets with the investment and support of Karali Snacks.
Karim Janmohamed of Karali Group said: “We are delighted to get this transaction over the line and are excited about the opportunity to work with the Crosstown team on further developing and enhancing this fantastic brand and offering.
“The Crosstown brand is synonymous with excellence, innovation and quality in the bakery sector, and we were immediately attracted to the chance to invest and propel the business forward," he added.
He said Karali Snacks will manage the investment in Crosstown, while Karali Group will further its investment strategy across the retail, consumer, leisure, and real estate spaces.
Karim Janmohamed won the Asian Business Award in the Young Entrepreneur of the Year category in 2023.
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