Lender Provides One-Stop Solution for Evening Star in its Acquisition of Zebb's Deluxe Grill & Bar
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Capitalizing on favorable market conditions, Evening Star, Inc., completed a deal with GE Capital Solutions, Franchise Finance that enabled it to purchase Zebb's Deluxe Grill & Bar brand, a casual dining concept in upstate New York that operates five units. The lender funded $7.2 million through a business enterprise loan and sale-leaseback on four properties.
"We worked with Evening Star to incorporate a sale-leaseback into the deal, allowing them to leverage the value of their real estate," says Paul Cantieri, vice president, GE Capital Solutions, Franchise Finance. "We saw it as an opportunity to provide Evening Star with resources to acquire and grow the Zebb's brand, and we were able to meet their needs in one transaction."
The deal is another in a long line of sale-leaseback transactions funded by GE Capital Solutions, Franchise Finance. Existing market conditions make sale-leasebacks an effective method of financing, providing business owners the opportunity to free up capital at favorable rates to grow their business. Analysts predict sale-leasebacks to be a popular financing tool well into 2007.
Rochester, N.Y.-based Evening Star was formed in late 2006 by Brian Bergeron and Kent Schmidt, a pair of existing Papa John's and Hardee's franchisee owners. The company was incorporated with the express purpose of purchasing the Zebb's concept and its locations in New Hartford, Mattydale, Amherst, Orchard Park, and Brighton (all of N.Y.).
"Having worked with GE Capital Solutions, Franchise Finance in the past, we knew they could provide a flexible financing package that met our needs," says Bergeron. "We needed funding for only four of our properties and they didn't disappoint. In fact, they were a great resource, acting as a one-stop shop so we could complete the loan and sale-leaseback."
The transaction allows Evening Star to preserve its capital for future growth opportunities.
GE Capital Solutions, Franchise Finance offers three-store and larger independent chain customers a variety of financing solutions, providing funds for new construction, acquisitions, refinancing, reimaging, and more.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 30 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).
GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $90 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.
GE (NYSE: GE) is Imagination at Work --- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts
Arment Dietrich
Gini Dietrich, 312-787-7249
[email protected]
or
GE Capital Solutions, Franchise Finance, Scottsdale
Christine Roe, 480-563-6260
[email protected]
Stephen White