SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 1, 2005--Olympus Partners, the private equity firm based in Stamford, Conn. recently completed the acquisition of K-MAC Enterprises, Inc. and Golden Partners, Inc., which included more than $200 million of financing led by GE Commercial Finance, Franchise Finance (GEFF).
The deal is Olympus Partners' most recent venture into the restaurant industry and includes a portfolio of restaurants in Oklahoma, Arkansas, Texas, and Missouri.
"We believe in the growth potential of franchised restaurants and K-MAC has a very attractive portfolio of successful restaurants," says Rob Morris, managing partner, Olympus Partners. "With funding from GEFF and the help of their team, we were able to purchase those restaurants and position the company for continued growth."
K-MAC reported $142 million in revenues in 2002 and $147 million in 2003. The buyout will form a
long-term relationship with the K-MAC management team, who will continue to run the day-to-day operations, Olympus Partners, and GEFF, which allows the teams to work collaboratively to achieve the company's growth objectives.
The deal allows for the sale-leaseback of 96 restaurant locations funded by GEFF, including Taco Bell, KFC, a number of co-branded Taco Bell/KFC restaurants, and four Golden Corral restaurants. K-MAC, based in Arkansas, is one of the largest franchisees in the Yum! Brands system and has won many awards for its success, corporate citizenship, and contribution to communities.
The total funding includes four major portions:
-- Nearly $100 million is designated for the sale-leaseback of 96 restaurant locations from K-MAC and Golden Partners to GEFF;
-- An $82 million term loan;
-- An $8 million development loan, co-led and arranged with Bank of America Securities;
-- More than $30 million in equity.
"From a capital and intellectual standpoint, GEFF was able to meet our needs," says Morris.
GEFF played a key role in structuring the deal and was the sole sale-leaseback provider, co-lead arranger, and syndication agent for the bank facility component of the transaction.
"GEFF is uniquely positioned to lead deals of this size. Very few lenders can offer $100 million in sale-leaseback financing, and act as co-lead arranger and syndication agent on an additional $90 million of senior debt," says Tom Quindlen, president and business leader, GEFF.
Olympus Partners is a private equity firm focused on middle market management buyouts and later stage venture capital deals. Founded in 1989, Olympus manages more than $1.7 billion on behalf of corporate pension plans, public retirement systems, university endowment funds, and executives of Olympus' portfolio companies. The company is currently investing capital from its fourth fund, Olympus Growth Fund IV, a $757.5 million fund formed in July 2003.
"GEFF invited Olympus to become a partner in the growth of K-MAC and we expect they will be a part of that growth moving forward," says Paul Rubin, general partner, Olympus Partners. "They recognized a significant growth opportunity just three months ago and made every effort to make certain the deal went smoothly, quickly, and with everyone's interests in mind."
"This deal embodies our commitment to the restaurant industry as a whole," says Gary Naquin, vice president of structured finance, GEFF. "It demonstrates the flexibility GEFF has to offer customers looking for funding to fit their needs."
GEFF funds four business needs, including the purchase of real estate and equipment, new construction or remodels, acquisitions, or refinancing.
GE Commercial Finance, Franchise Finance (GEFF) is a leading lender for the franchise finance market via direct sales and portfolio acquisition in the United States and Canada. With more than $12 billion in served assets, GEFF serves more than 6,000 customers and more than 21,000 property locations, primarily in the restaurant, hospitality, branded beverage, storage, and automotive industries. GEFF offers 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 Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of more than US$230 billion and is headquartered in Stamford, Conn., USA. General Electric (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better.
Contacts
TagTeam Global, Chicago
Gini Dietrich, 312-787-7249
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or
General Electric, Scottsdale
Christine Roe, 480-563-6260
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Jeff Wilson
GE Capital Corporate Finance
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1-203-749-6340