Brentwood Associates acquires 21 Taco Bell franchises

Brentwood AssociatesK-MAC Holdings Corp., owned by Brentwood Associates, has acquired 21 Taco Bell restaurants from Ricksim Inc., a franchisee that operates Taco Bell restaurants in the Oklahoma City market, as reported by QSR magazine.

“We are privileged to be able to continue to support the growth of a great company in K-MAC and a fantastic brand in Taco Bell,” says Rahul Aggarwal, managing director at Brentwood Associates.

Brentwood Associates is a consumer-focused Los Angeles-based private equity investment firm, which made its initial investment in K-MAC in March 2011.

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Brentwood Associates acquires 21 Taco Bell franchises

April 7th, 2014|Categories: Client News|Tags: , , , , |

The LABJ reports Brentwood Associates had its fill of restaurant franchisee

BrentwoodWest L.A. private equity firm Brentwood Associates usually holds on to its investments for six years or so, reported
the Los Angeles Business Journal
. But it was nearly eight years before Brentwood tried to sell Pacific Island Restaurants Inc. – the sole franchisee of Pizza Hut and Tacho Bell in Hawaii, Guam and Saipan.

A deal closed last month. The longer term speaks to how successful an investment the franchisee proved to be, said Rahul Aggarwal, managing director at Brentwood. “We didn’t entertain any opportunities to sell the business until last year,” he said. “The company continued to perform throughout the recession. There wasn’t any real impetus to sell any
sooner.”

The restaurant group’s sale to Nimes Capital in Century City, a private equity firm controlled by the Nazarian family, shows that franchised restaurants remain attractive targets for private equity.

“These make great private equity investments,” Aggarwal said. “The fast-food industry has a lot of brands that have performed through several recessions and that have consistent revenue growth. When you’re looking for deals, you’re looking for
those kinds of characteristics.”

January 8th, 2013|Categories: Client News|Tags: , , , |

Brentwood Associates sells Pizza Hut, Taco Bell franchisee to Nimes Capital

BrentwoodConsumer-focused private equity investment firm Brentwood Associates sold Pacific Island Restaurants Inc. to Nimes Capital last week, reported The Daily Journal. Honolulu-based Pacific Island Restaurants is the sole franchisee of Pizza Hut and Taco Bell restaurants throughout Hawaii, Guam and Saipan. The deal closed at the end of December, eight years after Brentwood purchased the company. Terms of the deal weren’t disclosed.

Brentwood’s managing director, Rahul Aggarwal, called the transaction a “successful investment,” reported The Daily Journal’s Connie Lopez. During the time Brentwood owned Pacific Island Restaurants, the company implemented call centers in the Pizza Hut system, opened six new restaurants and acquired six more.

2012 was a busy year for Brentwood Associates. In addition to selling Pacific Island Restaurants, Brentwood sold three other portfolio companies: Array Marketing Group, Filson Holdings and Ariat International.

Brentwood Associates announces sale of Pacific Island Restaurants

BrentwoodBrentwood Associates, a leading consumer-focused private equity investment firm, announced today it has completed the sale of Pacific Island Restaurants, Inc., to Nimes Capital, LLC.  PIR is the sole franchisee of Pizza Hut and Taco Bell throughout Hawaii, Guam and Saipan.  Terms of the transaction were not disclosed.

Since acquiring PIR in 2004, Brentwood has worked with the PIR management team to help them build upon their very strong market positions in both brands.  The Company implemented one of the most successful call centers in the Pizza Hut system, while also opening six new restaurants and acquiring six restaurants.  They have been able to capitalize on the strength of the Taco Bell and Pizza Hut brands to drive what has been a very successful investment.

Anthony Choe, Partner at Brentwood, commented, “The PIR management team under Henry Katsuda ‘s leadership has done a tremendous job executing on the company’s growth initiatives.  We are confident the company will continue to thrive under new ownership.”

Rahul Aggarwal, Managing Director at Brentwood, added, “PIR is one of the elite operators in the YUM! system, with incredible employee tenure and loyalty at all levels of the organization.  It’s been a true pleasure working with them and our partners at YUM!”

Commenting on PIR’s partnership with Brentwood, CEO Henry Katsuda said, “Brentwood has been an extremely supportive partner, providing us with the resources necessary for us to continue to build upon our success.  We feel very well positioned for the future ahead with our new partners at Nimes.”

The exit of PIR marks the latest in what has been an active year for Brentwood.  The firm has successfully exited three other investments in 2012:  Array Marketing Group, Filson Holdings and Ariat International.  In addition, Brentwood also acquired two high-growth, multi-channel lifestyle brands: Soft Surroundings and Sundance.

Harris Williams & Co. acted as the exclusive advisor to PIR.