NEW YORK, May 29 (Reuters) - Ice cream chain Salt & Straw, known for its quirky, small-batch flavors such as salty donut guava and cheese, is exploring a sale that could value the company at over $200 million, according to three people familiar with the matter.

The company, which generates over $100 million of annual revenue, is working with investment bank Piper Sandler on the sale process, the sources said, requesting anonymity to discuss a private matter. 

Piper declined to comment. Salt & Straw did not respond to comment requests.

Founded in Portland, Oregon, by cousins Kim Malek and Tyler Malek in 2011, Salt & Straw now operates around 50 stores mostly concentrated on the West Coast. The company recently started selling half-pints in select grocery stores. 

The founders remain significant shareholders but have brought in outside investors over the years, including celebrity Dwayne "The Rock" Johnson, private equity firm KarpReilly, and Enlightened Hospitality Investments.

The ice cream sector has seen several notable transactions in recent years. Last year, Unilever spun off its ice cream unit Magnum into a separately traded company now valued at about 8.63 billion euros, and it is already drawing interest from private equity investors. 

Among ice cream chains, minority investments have been more common than outright buyouts. Back in 2023, private equity firm Levine Leichtman Capital Partners acquired Michigan-based Kilwins, which has over 150 locations.

(Reporting by Abigail Summerville in New York, editing by Echo Wang and Franklin Paul)

By Abigail Summerville