Argonne and Fortress Acquire On The Border
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Argonne and Fortress Acquire On The Border

on the border nf1Argonne Capital Group has completed its previously announced acquisition of On The Border Mexican Grill & Cantina from Golden Gate Capital.  Argonne Capital partnered with Fortress Investment Group on the transaction.

On The Border is a full-service, casual dining Mexican restaurant which operates 121 units across the US and also franchises 36 units across the US, Puerto Rico, Saudi Arabia and South Korea. On The Border was founded in 1982 and is based in Dallas (www.ontheborder.com).

klump nf2“We are excited to have closed this transaction in such a swift manner and are eager to begin our partnership with the company’s strong management team,” said Michael Klump, President and Founder of Argonne Capital.  “The acquisition of On The Border fits squarely within Argonne’s investment mandate and offers a tremendous opportunity to leverage our track record of delivering operational excellence and executing a best-in-class real estate and development strategy.  We look forward to positioning this concept for long-term success.”

Argonne Capital Group makes investments of $25 million to $75 million in the multi-unit restaurant, retail and service industries.  Argonne also has a presence in multi-tenant retail real estate through its RCG Ventures platform.  In aggregate, Argonne and its affiliates have over $700 million of equity under management. The firm was founded by Michael Klump in 2003 and is based in Atlanta (www.argonnecapital.com).

With the completion of this acquisition, Argonne Capital has increased its restaurant portfolio to over 925 locations covering brands such as IHOP, Applebee’s, Krystal, On The Border and Stevi B’s Pizza.  Today, Argonne’s portfolio of companies employs over 25,000 people and generates in excess of $1.5 billion in annual system-wide sales.

Fortress Investment Group, Argonne’s partner on this transaction, is a global investment firm with over $53 billion in assets under management. Fortress manages assets on behalf of over 1,400 institutional clients and private investors worldwide across a range of investment strategies — private equity, credit, liquid hedge funds and traditional fixed income. The firm was founded in 1998 and is based in New York (www.fortress.com).

Financing for the transaction was led by GE Capital.  King & Spalding and McGuireWoods advised Argonne Capital on the transaction.

2014 PEPD • Private Equity’s Leading News Magazine • 6-4-14

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