KBP Foods has been acquired by Victory Park Capital and Boathouse Capital in partnership with OFS Capital and KBP’s current management team. KBP Foods was a portfolio company of Boyne Capital Partners.
“We’re excited to partner with Boathouse, Victory Park and OFS as we embark upon our next phase of growth. Our new private equity partners exhibited a high degree of flexibility and sophistication in navigating a complex and highly structured transaction,” said Barry Dubin, Senior Vice President of Business Development for KBP. “With our new capitalization, we are in an attractive position to take advantage of the opportunities before us.”
KBP Foods owns and operates 220 branded restaurants under franchise agreements with KFC, Taco Bell, and Long John Silver’s. The company is the second largest domestic KFC franchisee and among the top 25 largest restaurant franchisees of any brand in the United States. Through a series of acquisitions, KBP management has grown the business from just five restaurants in 1999 and now operates restaurants in Florida, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, North Carolina, Texas, and Virginia. The current management team – led by CEO Michael Kulp – will continue to execute on KBP’s strategy of acquiring and improving operations of franchised restaurants. KBP is headquartered in Overland Park, KS (www.kbp-foods.com).
“Victory Park is excited to partner with and invest alongside KBP’s best-in-class management team,” said Victory Park Principal Chad Peterson. “KBP is uniquely positioned to continue capitalizing on consolidation opportunities and we look forward to participating in the next stage of growth and value creation.”
Victory Park Capital invests from $10 million to $50 million per transaction in small cap public companies and middle market private companies that typically generate less than $150 million in revenue and less than $30 million of EBITDA. The firm focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park was founded in 2007 and is based in Chicago with additional offices in Boston, Los Angeles, New York and San Francisco (www.victoryparkcapital.com).
“We’re thrilled to back such an outstanding management team in the acquisition of the business they have run for many years. They are tremendously impressive operators and we are confident the company will continue to prosper and grow with the support of its new capital partners,” said Steve Gord, Partner at Boathouse Capital.
Boathouse Capital invests mezzanine debt and equity in lower middle market companies in partnership with management teams and private equity funds. Boathouse will consider investments from $5 million to $25 million in either mezzanine debt or equity capital in companies with EBITDAs of $1.5 million or greater. The firm manages over $350 million in two separate funds and is based near Philadelphia in Wayne, PA (www.boathousecapital.com).
Boyne Capital Partners first invested in KBP Foods in April 2011. During Boyne’s term of ownership, KBP grew from operating 65 branded restaurants to operating 220 units and becoming the largest US franchisee in the KFC system. During the same period, the EBITDA of the company has more than tripled.
“We appreciate Boyne’s support throughout the last four years. Derek McDowell and the Boyne team are entrepreneurs’ investors. They helped us drive great growth, providing both capital and counsel,” said Michael Kulp, CEO of KBP.
“Boyne Capital has greatly enjoyed working with KBP and its CEO and founder, Mike Kulp. Mike and his team exemplify great leadership and operational excellence. Helping KBP realize its growth has been a personal and professional pleasure,” said Mr. McDowell. “This transaction has also been a great experience for our investors.”
Boyne Capital invests in companies with revenues between $30 million and $100 million and cash flow of more than $3 million. Sectors of interest include niche manufacturing, specialty services, value-added distribution, consumer products, waste water and related fields, and restaurants. The firm was founded by Derek McDowell in 2006 and is headquartered in Miami (www.boynecapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-26-15