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Flynn Restaurant Group L.P., the nation's largest franchisee and an operator of the Applebee's and Taco Bell brands, closed Tuesday on a $300 million strategic investment from a Canadian teachers' pension fund, a deal that brings the company's value to more than $1 billion.
With the investment, the Ontario Teachers' Pension Plan, or OTPP, holds a more than 50-percent stake in the franchise operator. Joining the pension fund in the deal is Flynn Restaurant Group founder, chairman and chief executive Greg Flynn, along with other members of the franchise group's management team, who, as a result, significantly increased their direct ownership in the San Francisco-based company.
The management team, along with OTPP, through its Teachers' Private Capital group, has purchased the interests held by private equity firms Goldman Sachs Group Inc. and Weston Presidio, allowing those two groups to exit their investment.
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Flynn Restaurant Group, or FRG, is now the first domestic franchisee to be valued at more than $1 billion, Flynn said. The franchise group is also the first to successfully exit from conventional private equity ownership.
"We have a better growth story than many franchisors," Flynn...