Krispy Kreme to Sell Japan Operations to Unison Capital in $65m Deal

Krispy Kreme, Inc. has announced a definitive agreement to sell its Japanese operations to private equity firm Unison Capital, Inc. The transaction marks the first major international refranchising agreement under the company’s turnaround plan initiated in August.

Cash proceeds from the deal are estimated at approximately $65 million, contingent on fiscal year 2025 financial results for the Japanese unit. The transaction is projected to close in the first quarter of 2026.

Strategic Rationale and Financial Impact

The sale represents a strategic pivot for the doughnut giant, aimed at reducing leverage and increasing financial flexibility. Krispy Kreme intends to utilise the proceeds primarily for debt repayment after transaction-related fees.

Josh Charlesworth, CEO of Krispy Kreme, described the move as "meaningful progress" on the company's refranchising initiative: "The sale of our Japan business is an important step in advancing our refranchising initiative, supporting greater financial flexibility and reducing debt. Unison is a proven, skilled operator with deep expertise in the retail beverage and restaurant sectors, and we believe they are an ideal long-term partner to operate and grow Krispy Kreme in Japan."

Market Context and Buyer Profile

The agreement comes just days after Krispy Kreme celebrated its 20th anniversary in the Japanese market. Since opening its first store in Shinjuku, Tokyo, the brand has expanded to 89 locations and nearly 300 fresh delivery access points nationwide.

About the Buyer: Founded in 1998, Unison Capital specialises in consumer, healthcare, and B2B services, having raised approximately $5 billion in assets across funds in Japan and South Korea. Its portfolio history includes relevant investments in the food and beverage sector, such as a sushi chain, a noodle chain, a wine retailer, and a bubble tea chain.

Tatsuya Hayashi, Co-Founder and Managing Partner at Unison, commented on the acquisition: "We are excited to assume ownership of Krispy Kreme’s operations in Japan and to be joining forces with such an iconic global brand. For two decades, Krispy Kreme’s fresh doughnuts have brought joyful experiences to communities across Japan and we look forward to building on that tradition."